Intraday bias remains bullish as long as support 0.84990 holds. It hit a low of 0.86106 yesterday and is currently trading around 0.85996.
Markets eye US CPI for further direction.
CPI preview-
Headline annual US CPI is expected to rise by 2.3% in Sep from previous 2.5%. Core CPI (excluding food and energy) is forecast to increase 3.2 y/y. On the monthly basis, CPI to decline 0.10% from 0.20%. Core CPI is anticipated to decrease 0.20%.
Technicals-
The pair is trading above 34 and 55 EMA in the 4-hour chart.
The near-term resistance is around 0.8620 any break above targets 0.8660/0.8698/0.8750. The bearish pattern from 0.92244 will be completed at 0.8375 if the pair closes above 0.8750. A jump to 0.8800/0.8925 is possible. The immediate support is at 0.8550, any violation below will drag the pair to 0.8530/0.84990/0.8440/0.8420/0.8390/0.8365 (61.% fib projection)/0.8340.
Indicator (4-hour chart)
CCI (50)- Bullish
Average directional movement Index - Neutral. Overall trend is mixed.
It is good to buy on dips around 0.8570 with SL around 0.85280 for a TP of 0.8660/0.8698.
