The pair pared some of its gains as demand for safe-haven assets increased. Overall bias remains bullish as long as support 0.8780 holds. It hit a low of 0.88422 and is currently trading around 0.88492.
The S&P/Case-Shiller Composite-20 Home Price Index for September 2024 shows a year-on-year increase of 1.5%, indicating a slowdown in home price growth as the housing market cools due to rising interest rates and economic concerns. The Richmond Manufacturing Index for November 2024 dropped to -12, down from -8 in October, signaling a contraction in manufacturing activity in the Fifth Federal Reserve District, with decreases in shipments and new orders. Meanwhile, the Conference Board Consumer Confidence Index fell slightly to 106.5 from 107.0 in October, reflecting some worries about inflation, though it remains above 100, suggesting overall positive consumer sentiment. On a brighter note, new home sales in October 2024 reached 800,000 units, up 3% from September, showing some strength in the housing market despite challenges. Together, these indicators highlight the mixed state of the U.S. economy as it navigates various challenges.
Technical Analysis
The pair is currently trading below the 34- and above 55-EMA on the 4-hour chart.
Near-Term Resistance: Current resistance is at 0.8880. A break above this level could lead to targets at 0.8900/0.8960/ 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 0.8840. 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.
