It's only fitting ahead of the NFP tomorrow that the US Dollar Index has a setup against key resistance. The U.S. dollar is trading just shy of the 52-week high put in last month, and we have developed a bullish wedge. This high (94.50) is so important because it is the long-term weekly Fibonacci retracement of the post-COVID highs to lows in 2020. A move above the 94.50 level would be a very bullish development.
Support is at 94.00 (wedge), but where the U.S. dollar turns bearish is back below the 93.50 level. One thing we have to keep in mind going into NFP is that the FOMC laid out plans to taper bond purchases and wrap up mid-2022. An employment miss shouldn't deter the Fed near term, so the U.S. dollar could find buyers on any dip tomorrow.