Currency Pair Climbs Post-Fed Cut: Market Watch for 0.9030 Resistance

The currency pair gained above 0.9000 after a hawkish rate cut by the Fed. Intraday bias remains bullish as long as the support level at 0.8890 holds. The pair reached a high of 0.90211 and is currently trading around 0.89652.

Federal Reserve Rate Cut Overview
The Federal Reserve recently cut its benchmark interest rate by 25 basis points, bringing it to a range of 4.25% to 4.5%. This is the third rate cut in 2024, totaling a 1 percentage point reduction since September. The Fed now plans to make only two more rate cuts by the end of 2025, down from four, due to rising inflation expectations. Although inflation has cooled slightly, it remains above the Fed's target of 2%, leading to a cautious approach in further rate changes. The decision was not unanimous, as Cleveland Fed President Beth Hammack preferred to pause cuts. The Fed's positive outlook includes steady growth and low unemployment, but it faces challenges with ongoing inflation. Overall, while rate cuts are happening, a slow and careful approach is expected moving forward.

Technical Analysis
The pair is currently trading above both the 34-EMA and the 55-EMA on the 4-hour chart, indicating a potential uptrend. The near-term resistance level is at 0.9030; a break above this could lead to targets at 0.9070 and 0.9100. A break above 0.87500 confirms that the decline from 0.9225 has completed at 0.83750.

Support and Resistance Levels
Immediate support is at 0.8950. If this level is broken, the pair could decline to 0.8890/0.8850, 0.8835, and down to 0.8600. Additional levels to watch include 0.8580, 0.8550, 0.8525, and 0.8499, with a significant Fibonacci projection at 0.8365.

Market Indicators
On the 4-hour chart, the Commodity Channel Index (CCI) is showing a bullish trend, while the Average Directional Movement Index indicates a neutral trend. Overall, the trend remains mixed.

Trading Strategy Recommendation
Consider buying on dips around the support level of 0.8940, with a stop-loss set at 0.8890 and a target price of 0.9070.