The currency pair trades above 0.9050 on board-based US dollar buying.It recently hit a high of 0.90729 and is currently trading around 0.90588. The intraday bias is bullish as long as the support level at 0.8890 holds.
The S&P CoreLogic Case-Shiller 20-City Composite Home Price Index shows a year-over-year increase of 4.2% as of October 2024, matching expectations. This indicates stability in the housing market despite past fluctuations. However, the index's growth has slightly cooled, as it was 4.6% in September 2024. Month-over-month, the index declined by 0.3%, continuing a trend seen in recent months. This data suggests that while home prices are still rising, the rate of growth is slowing due to various economic factors.
Technical Indicators for Potential Uptrend
The pair is trading above both the 34-EMA and 55-EMA on the 4-hour chart, suggesting a potential uptrend. The next resistance level to watch is at 0.9080; a breakthrough could lead to targets at 0.9100 and 0.9150. If the pair drops below 0.8750, it would signal the end of the downtrend that started from 0.9225 and completed at 0.8375.
Support and Resistance Levels
Immediate support for the pair is at 0.8980. If this level is breached, the pair could decline to 0.8940/0.8890, 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) and Average Directional Movement Index (ADX) suggesting bullish signals for traders.
Recommended Trading Approach
It is advisable to consider buying on dips around 0.9030, with a stop-loss set at 0.8980 and a target price of 0.9070 for potential gains.
