EURUSD showed a minor pullback post an upbeat US PPI. It hit a fresh year low of 1.04948 at the time of writing and is currently trading around 1.05635.
In October 2024, the Producer Price Index (PPI) for the United States rose by 0.2% from September, marking its first increase since August. Year-over-year, the PPI increased to 2.4%, up from 1.9% in September, indicating stronger inflation pressures. The Core PPI, excluding food and energy, went up by 0.3% month-over-month and 3.1% year-over-year, exceeding last month's increase of 3.0% and market expectations of 2.8%
.Technical Analysis Overview
The pair remained below both short-term (34 and 55-4H EMA) and long-term (200-4H MA) moving averages.
Resistance Levels: Near-term resistance is at 1.0580. A breakout above this could push the pair towards targets at 1.0600/1.0660/1.070/1.0760/$1.0835, and possibly 1.0900. Major bullish momentum is expected only if prices surpass 1.1000, which would open the door to 1.1070 and 1.1150.
Support Levels: Immediate support is at 1.0500. A drop below this could lead to further declines to 1.0435/ 1.0400.
Indicator Insights (4-Hour Chart): The Commodity Channel Index (CCI) indicates a bearish trend, while the Average Directional Movement Index (ADX) suggests a bearish outlook.
Trading Strategy
Given the weak sentiment in technical indicators, a sensible strategy would be to sell on rallies around the 1.0600 mark, with a stop-loss at 1.0660 and a target price of 1.0435 for potential gains.
