Facts:
- EURUSD rebounded two days ago from a key support level around 1.0465–1.0470.
- Following NFP data release, the pair has crossed above the resistence of 1,0600
- The MACD is bullish, positioned above the signal line, while the RSI remains neutral, leaving room for further upward movement.
- The increase in U.S. unemployment supports expectations of another rate cut by the Fed.
Recommendation:
- Trade Type: Buy at the market price
- Take Profit 1: 1.070
- Take Profit 2: 1.079
- Stop Loss: 1.0475
Commentary:
The rebound of EURUSD from support around 1.0465–1.0470 suggests a potential exhaustion of the “Trump Trade” effect on the major currency pair and a softening of speculation regarding an overly hawkish Fed policy in response to potential inflationary pressures under the Trump administration (at least in the short term). The market currently prices a 85% chance of another rate cut in the U.S. in December, which further weakens the dollar. The increase in U.S. unemployment, driven by a prolonged job search period and rising labor supply, suggests that the Fed may continue easing monetary policy despite recent hawkish comments indicating no rush to act.
Source: xStation5
