• EUR/AUD initially dipped on Friday but recovered some ground as investors digested US payrolls data.
• The U.S. economy created 22,000 jobs last month instead of an estimated 75,000, confirming softening labor market conditions, according to the Labor Department report.
•Traders are pricing a 10% chance of a 50-basis-point Fed rate cut this month, while the probability of a smaller 25-basis-point cut stands near 90%, according to the CME FedWatch tool.
• With rate expectations in focus, investors are set to closely watch U.S. inflation data coming week, with the monthly consumer price index due on Thursday.
• Immediate resistance is located at 1.7923(Higher BB), any close above will push the pair towards 1.8000(Psychological level)
• Strong support is seen at 1.7807 (50%fib ) and break below could take the pair towards 1.7670 (Lower BB).
Recommendation: Good to buy around 1.7800, with stop loss of 1.7720 and target price of 1.7880
