The pair showed a minor profit booking after hitting a multi-month high. Overall bias remains bullish as long as support 0.8780 holds. It hit a high of 0.8958 and is currently trading around 0.88904.
The preliminary reading of the U.S. Flash Manufacturing Purchasing Managers' Index (PMI) for November 2024 is 48.8, slightly up from 48.5 in October. This reading indicates that the manufacturing sector is still contracting but at a slower pace. In comparison, the services sector PMI rose to 57.0, well above the expected 55.2, showing strong growth in that area. Overall, while manufacturing struggles, services are performing robustly.
Technical Analysis
The pair is currently trading above the 34- and above 55-EMA on the 4-hour chart.
Near-Term Resistance: Current resistance is at 0.8960. A break above this level could lead to targets at 0.9000/0.90480. The break above 0.87500 confirms that decline from 0.9225 got completed at 0.83750.
Immediate Support: The next support level is at 0.8850. If this level is broken, the pair could drop to 0.8780/0.8720/0.8700/0.8660/0.8600/0.8580, 0.8550, 0.8525, 0.8499, 0.8440, 0.8420, 0.8390, 0.8365 (61.8% Fibonacci projection), or even 0.8340.
Indicator Analysis (4-hour chart)
- CCI (50): Bullish
- Average Directional Movement Index: Bullish
Overall, the trend remains bullish
Trading Recommendation
Consider buying on dips around 0.8840, with a stop loss set at 0.8780 and aiming for a target price of 0.9000.
