Forex technical analysis:
Fed officials generally agree that they may not need to reduce rates again unless the economy changes significantly. In late October, the central bank cut its benchmark overnight lending rate by 0.25 percentage points to a range of 1.5% to 1.75%, the third rate cut in 2019.
Yet, the minutes said the “majority” of FOMC members believed the measures were sufficient to “support moderate growth, a strong labor market, and a near-symmetric 2% inflation outlook” and that policy position “may remain unchanged as long as the latest information on the economy does not lead to a substantial reassessment of the economic outlook.”
Still, they insisted that even if the policy was likely to remain unchanged and would not follow the pre-set course, the commissioners would continue to assess the changes in data and overall outlook. Members often note that the delayed effects of the Fed’s policy changes may require a year or more to feel, so they plan to watch how a shift in looser policies will affect financial conditions. The rate cut began in July, just seven months afterward the committee approved its fourth rate hike in 2018.
Forex fundamental analysis:
The DXY’s Wednesday correction was supported above 97.80, rebounding below 98.05 and closing at 97.94, meaning the USD short-term correction is likely to stay at a rally. If the DXY pullback is supported above 97.80 today, the quarry of the post-market rally will point to 98.05-98.15. Today, DXY short-term resistance at 98.00-98.05, short-term important resistance 98.10-98.15. DXY short-term support at 97.80-97.85, short-term important support at 97.70-97.75.
EUR/USD rebounded below 1.1085 on Wednesday, with a correction above 1.1050 and closing at 1.1070, meaning the EUR/USD short-term rally is likely to maintain the correction. If EUR/USD bounces below 1.1085 today, the quarry of the post-market correction will point to 1.1055-1.1040. Today EUR/USD short-term resistance at 1.1080-1.1085, short-term important resistance at 1.1095-1.1100. EUR/USD short-term support at 1.1055-1.1060, short-term important support at 1.1040-1.1045.
Forex Trading Strategy Recommendations:
EUR/USD: 1.1085 Sell, 1.1105 Stop Loss, 1.1040 Take Profit
GBP/USD: 1.2940 Sell, 1.2970 Stop Loss, 1.2870 Take Profit
USD/CHF: 0.9895 Buy, 0.9875 Stop Loss, 0.9955 Take Profit
USD/JPY: 108.80 Sell, 109.05 Stop Loss, 108.20 Take Profit
AUD/USD: 0.6825 Sell, 0.6850 Stop Loss, 0.6765 Take Profit
USD/CAD: 1.3275 Buy, 1.3245 Stop Loss, 1.3345 Take Profit