Fundamental Backdrop
We had the FOMC and NFP news release last week.
The FOMC increased its rate hike by 25 basis points as expected to 5.25%. The DXY dropped to a low of 101 after FED Chair Jerome Powell acknowledged the central bank's efforts to tame inflation is seeing some progress, also giving indication that it is nearing the end of its hiking cycle soon.
Although the NFP results were better than expected, increasing by 253,000 jobs last month, exceeding economists’ expectations, and the unemployment rate dropping to a 53-year low of 3.4%.
The results were overshadowed by traders watching for the Fed’s possible interest rate cut or pause which caused the DXY to weaken further after the NFP news release.
Technical Confluences
1. Near-term support at 101
2. Next key support at 100
Idea
The 1st support is at the 101 round number. We are looking for price to continue bearish towards that area. A break below 100.800 could potentially bring price towards the next strong key support of 100.
NOT FINANCIAL ADVICE DISCLAIMER
The trading related ideas posted by OlympusLabs are for educational and informational purposes only and should not be considered as financial advice. Trading in financial markets involves a high degree of risk, and individuals should carefully consider their investment objectives, financial situation, and risk tolerance before making any trading decisions based on our ideas.
We are not a licensed financial advisor or professional, and the information we are providing is based on our personal experience and research. We make no guarantees or promises regarding the accuracy, completeness, or reliability of the information provided, and users should do their own research and analysis before making any trades.
Users should be aware that trading involves significant risk, and there is no guarantee of profit. Any trading strategy may result in losses, and individuals should be prepared to accept those risks.
OlympusLabs and its affiliates are not responsible for any losses or damages that may result from the use of our trading related ideas or the information provided on our platform. Users should seek the advice of a licensed financial advisor or professional if they have any doubts or concerns about their investment strategies.
We had the FOMC and NFP news release last week.
The FOMC increased its rate hike by 25 basis points as expected to 5.25%. The DXY dropped to a low of 101 after FED Chair Jerome Powell acknowledged the central bank's efforts to tame inflation is seeing some progress, also giving indication that it is nearing the end of its hiking cycle soon.
Although the NFP results were better than expected, increasing by 253,000 jobs last month, exceeding economists’ expectations, and the unemployment rate dropping to a 53-year low of 3.4%.
The results were overshadowed by traders watching for the Fed’s possible interest rate cut or pause which caused the DXY to weaken further after the NFP news release.
Technical Confluences
1. Near-term support at 101
2. Next key support at 100
Idea
The 1st support is at the 101 round number. We are looking for price to continue bearish towards that area. A break below 100.800 could potentially bring price towards the next strong key support of 100.
NOT FINANCIAL ADVICE DISCLAIMER
The trading related ideas posted by OlympusLabs are for educational and informational purposes only and should not be considered as financial advice. Trading in financial markets involves a high degree of risk, and individuals should carefully consider their investment objectives, financial situation, and risk tolerance before making any trading decisions based on our ideas.
We are not a licensed financial advisor or professional, and the information we are providing is based on our personal experience and research. We make no guarantees or promises regarding the accuracy, completeness, or reliability of the information provided, and users should do their own research and analysis before making any trades.
Users should be aware that trading involves significant risk, and there is no guarantee of profit. Any trading strategy may result in losses, and individuals should be prepared to accept those risks.
OlympusLabs and its affiliates are not responsible for any losses or damages that may result from the use of our trading related ideas or the information provided on our platform. Users should seek the advice of a licensed financial advisor or professional if they have any doubts or concerns about their investment strategies.