NFP numbers support a bullish close on the Dollar

Today we had the Non-Farm Payrolls (NFP) numbers out of the US, which came out better than expected, causing an amazing comeback on the Dollar Index. The US economy was expected to have created 182K new jobs during the month of July, but the reading came out at 209K new jobs. The unemployment rate dropped from 4.4% to 4.3% and the average hourly earnings rose by 0.3%. The data was more than excellent and it was exactly what the Dollar needed to change its direction versus its main counterparts. On the daily chart of the Dollar Index we can see that the instrument broke above the 93.00 level and it may try to continue rising towards the 94.00 level. The stochastics indicator is trying to come out of the oversold zone at the 20% level and if it does, then there could be a trend reversal on the index. The 94.00 level could act as a resistance, followed by the 95.00 or the 55 day EMA (purple line). To the downside, the 92.00 level could still act as a support in case of a bearish continuation on the Dollar Index.