Intraday bias remains bullish as long as support 0.8550 holds. It hit a high of 0.86696 and is currently trading around 0.86589.
The policy divergence between the US Fed and SNB supports the pair at lower levels.
Jobless claims dropped to 227,000 for the week ending October 19, down from 242,000 the week before, suggesting some stability in the labor market. The four-week moving average rose by 6,750, reaching 231,000, which indicates that jobless claims are still showing fluctuations despite the recent decline.
The S&P Global Flash U.S. Manufacturing PMI increased slightly to 47.8 in October, up from 47.3 in September. However, this still shows that manufacturing activity is contracting for the fourth month in a row. On the other hand, the Flash Services PMI rose to 51.5, indicating modest growth in the services sector, which is important since it makes up a large part of the U.S. economy.
Technicals-
The pair is trading above 34 and 55 EMA in the 4-hour chart.
The near-term resistance is around 0.8700 any break above targets is 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 0.8620, any violation below will drag the pair to 0.8580/0.8550/0.8525/ 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 bullish
It is good to buy on dips around 0.8630 with SL around 0.8578 for a TP of 0.8748.
