The currency pair recovered more than 50 pips after a minor sell-off. Intraday bias remains bullish as long as the support level at 0.8890 holds. The pair reached a low of 0.89158 and is currently trading around 0.89680.
Technical Analysis Signals Mixed Uptrend
The pair is currently trading above both the 34-EMA and the 55-EMA on the 4-hour chart, indicating a potential uptrend. The near-term resistance level is at 0.9000; a break above this could lead to targets at 0.9030, 0.9070, and 0.9100. A break above 0.87500 confirms that the decline from 0.9225 has been completed at 0.83750.
Support and Resistance Levels to Monitor
Immediate support is at 0.8940. If this level is broken, the pair could decline to 0.8890, 0.8850, 0.8835, and down to 0.8600. Additional levels to watch include 0.8580, 0.8550, 0.8525, and 0.8499, with a significant Fibonacci projection at 0.8365.
Mixed Trend Indicators Demand Cautious Trading
On the 4-hour chart, the Commodity Channel Index (CCI) is showing a bullish trend, while the Average Directional Movement Index indicates a neutral trend. Overall, the trend remains mixed.
Trading Strategy: Buy on Dips for Potential Gains
Consider selling on rallies around 0.8978-80, with a stop-loss set at 0.9030 and a target price of 0.8780.
