The currency pair showed a minor sell-off after weak US jobs data. 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.
In February 2025, the U.S. Flash PMI data revealed diverging trends in the manufacturing and services sectors. The Manufacturing PMI increased to 51.6, surpassing expectations and reaching its highest level since June 2024. This indicates ongoing recovery, with factory output expanding for the second month at the quickest rate in nearly a year. Conversely, the Services PMI sharply declined to 49.7, falling below both the previous month's figure and expectations. This represents the first contraction in the service sector in over two years, driven by concerns regarding new orders and business sentiment. The data signals a stabilization in the U.S. private sector economy, though manufacturers continued to indicate a fall in output
Technical Analysis and Resistance Levels
The pair is trading below the 34-EMA and 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 0.8940, any violation below will drag the pair to 0.8890/0.8800.
Indicators
CCI (50) - Bearish
Directional movement Index - bearish
Trading Strategy Recommendation
It is good to sell on rallies around 0.9000 with a stop-loss at 0.9040 for a TP of 0.8940/0.8900.
