US Dollar clings to robust ADP report-led gains beyond 102.00 handle

The greenback, as measured by the key US Dollar Index, extended its up-move and moved back above the 102.00 handle during early NA session.

The US Dollar gained fresh traction after robust ADP report, showing the US private sector employment increased by 298K during February as against 190K consensus estimates and previous month's 246K.

The ADP report is considered as a precursor to the official jobs data, and hence, today's blowout number might have now raised expectations from Friday's headline NFP print. 

ADP report signals towards a strong NFP

With the CME group's FedWatch Tool already pointing to nearly 90% probability for a Fed rate-hike action at its upcoming two-day meeting next week, upbeat payrolls number should act as a catalyst triggering a fresh leg of up-move for the index. 

Technical levels to watch

Bulls would be aiming for a follow through strength beyond 102.15 level, above which the upward trajectory seems more likely to get extended beyond multi-week highs resistance near 102.25-30 area towards 102.95 level (Jan. 11 high). 

On the downside, 101.80 level now seems to protect immediate downside, which if broken is likely to accelerate the slide towards 101.55-50 zone ahead of weekly lows support near 101.25-20 region.