The currency pair gained momentum on board-based US dollar buying. It hit a low of 0.90073 and is currently trading around 0.91169. The intraday bias appears bullish as long as the support level at 0.9000 holds.
The US ISM Services PMI for December 2024 reached 54.1, compared to 52.1 the prior month, the sixth consecutive monthly increase in services. The Business Activity Index rose to 58.2, so business activity appears healthy. New Orders came in at 54.2, though, and growth was decelerating. The Employment Index was down at 51.4, meaning that job growth was slowing. Prices Paid stood at 64.4, the highest since early 2023, and reflected that service providers saw costs rise. Generally, it's quite expanding and resistant to stress. Hence data are crucially important to an economy.
Technical Analysis and Resistance Levels
The pair is trading above the 34-EMA and 55-EMA on the 4-hour chart indicating a bullish trend. The immediate resistance is at 0.9150 any break below targets is 0.9180/0.92250.
Support Levels and Potential Declines
On the downside, near-term support is around 0.9070, any violation below will drag the pair to 0.9030/0.9000/0.8940/0.8890.
Bullish Indicators
CCI (50) - Bearish
Directional movement Index - Neutral
Trading Strategy Recommendation
It is good to buy on dips around 0.9110 with a stop-loss at 0.9070 for a TP of 0.9200.
