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FxWirePro- EURUSD trades above trend line resistance after a surprise 50 bpbs rate cut by Fed, good to buy on dips

Trend line resistance- 1.11275 (trend line joining 1.12016 and 1.11554)

 

EURUSD pared most of its gains despite the Fed 50 bpbs rate cut. It hit a low of  1.10683 at the time of writing and is currently trading around 1.11554.

 

It cut rates by 50 bpbs compared to a forecast of 25 bpbs, the first cut since 2020.

The central bank stated that Job gains have slowed and inflation is moving towards fed target of 2% but remains slightly elevated.

 

The pair trades above short-term (34 AND 55 EMA) in 4-hour chart.  Major resistance to watch- 1.1180/1.12050. Bullish continuation only above 1.1280.

 

Major support- 1.1140,1.1090,1.1060/1.100/1.09880.

 

Indicators ( 4- hour chart)

 

Directional movement index  -Bullish

CCI (50)- Bullish

CCI(14)- Bullish

It is good to buy on dips around 1.1145-48 with SL around 1.10960 for a TP of 1.1275.

 

 

 

 

 

 

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