Intraday trend – Neutral
Major intraday Support– 1.1290
The pair regained above 1.1300 on board-based US dollar weakness. The upbeat market mood and global market recovery are putting pressure on the US dollar. US economy has expanded at an annual pace of 2.3% compared to a forecast of 2.1%. US Consumer confidence rose in Dec to 115.8 in Dec vs estimate 111. The policy divergence between US Fed and ECB is preventing the pair from further upside. It hits an intraday high of 1.13422 and is currently trading around 1.13290.
Economic data-
Market eyes US PCE and Core Durable goods orders for further direction.
Technical-
Any breach below 1.12900 confirms intraday bearishness. A dip till 1.1260/1.1230/1.1180 is possible.
The immediate resistance to be watched is 1.1360; any violation above will take the pair to 1.1400/1.1435.
Indicators (4-hour)
Directional movement index –Neutral
CCI (50) – Bullish
It is good to buy on dips around 1.1300 with SL around 1.1260 for a TP of 1.1380/1.1435.
