The currency pair trades flat due to holiday mood. It hits a high of 0.90119 currently trading around 0.8999. The intraday bias remains bullish as long as the support level at 0.8890 holds.
As of November 2024, the Richmond Manufacturing Index stayed at -14, showing continued problems in the manufacturing sector for twelve months in a row. Shipments and new orders worsened, but employment conditions improved slightly. Historically, this index has averaged around 2.24 points since 1993, with a high of 27 in 2004 and a low of -54 during the COVID-19 pandemic. Despite the current struggles, businesses are feeling more hopeful about the future, with expectations for better conditions rising from 21 to 31. Overall, there are signs of potential recovery ahead, even as challenges remain.
Technical Indicators for Potential Uptrend
The pair is trading above both the 34-EMA and 55-EMA on the 4-hour chart, signaling a possible uptrend. The next resistance level to watch is at 0.9030; a breakthrough could lead to targets at 0.9070 and 0.9100. If the pair declines below 0.87500, it would confirm the end of the downtrend that started from 0.9225 and completed at 0.83750.
Support and Resistance Levels
Immediate support is at 0.8940. If this level is breached, the pair could drop to 0.8890, 0.8850, 0.8835, and 0.8600. Additional levels to monitor include 0.8580, 0.8550, 0.8525, and a significant Fibonacci projection at 0.8365.
Caution in Trading Strategy
The 4-hour chart shows a bullish trend in the Commodity Channel Index (CCI), but the Average Directional Movement Index indicates a neutral trend, suggesting mixed signals for traders.
Recommended Trading Approach
Consider buying on dips around 0.8978-80, with a stop-loss set at 0.8940 and a target price of 0.9070 for potential gains.
