Intraday trend – Neutral
Major intraday resistance – 1.13800
The pair is trading in a narrow range after a pullback from a 16-month low of 1.11861. The hawkish comment from the US Fed chairman has pushed the pair lower to 1.12353 on Tuesday. The improvement in the risk sentiment is preventing the decline of US treasury yields. The US private sector has added 534000 jobs in Nov slightly above the estimate of 525000. The US ISM manufacturing PMI came at 61.1 vs the forecast of 61.3. It hits an intraday high of 1.13392 and is currently trading around 1.13202. Markets eye US Non-farm payroll data which is to be released tomorrow for further direction.
Any breach below 1.11300 confirms intraday bearishness. A dip till 1.12350/1.1180/1.1150/1.100 is possible.
The immediate resistance to be watched is 1.1380; any violation above will take the pair to 1.1430/1.1470.
Indicators (1-hour)
Directional movement index –Neutral
CCI (50) - Bullish
It is good to buy on dips around 1.1300 with SL around 1.1250 for a TP of 1.1435.
