The currency pair showed a minor pullback as the US dollar recovered. It hit a low of 0.8970 and is currently trading around 0.90147. The intraday bias appears to be bearish as long as the resistance 0.9071 holds.
The Empire State Manufacturing Index bounced back in February 2025, indicating better conditions for NY manufacturers. The lead index improved to 5.7, which suggests manufacturing is increasing modestly instead of contracting.
New orders and shipments improved but employment declined. Manufacturers are paying more for their inputs, with the cost of inputs moving up fast.
Even in the improved situation, manufacturers are less optimistic about the future. Delivery is slightly slower, and it's harder to get supplies
Technical Analysis and Resistance Levels
The pair is trading above the 34-EMA and below the 55-EMA on the 4-hour chart indicating a mixed trend. The immediate resistance is at 0.9070 any break above targets 0.9100/0.9150/0.9200/0.92250/0.9275/0.9030.
Support Levels and Potential Declines
On the downside, near-term support is around 0.9000, any violation below will drag the pair to 0.8940/0.8890/0.8800.
Bullish Indicators
CCI (50) - Bearish
Directional movement Index - Neutral
Trading Strategy Recommendation
It is good to sell on rallies around 0.90580-60 with a stop-loss at 0.9100 for a TP of 0.8940/0.8900.
