The currency pair trades higher on strong US treasury yields. It hit a high of 0.91877 and is currently trading around 0.91583. The intraday bias appears bullish as long as the support level at 0.9000 holds.
As of December 2024, the Core PPI was reported unchanged for the month, below the expected 0.3% increase. Year-over-year, the Core PPI increased by 3.5%, which was slightly higher than November's 3.4% but lower than expected at 3.8%. The overall PPI increased 0.2% for the month and 3.3% year-over-year, which indicated less inflation than expected. This suggests inflation might be coming off, which would shift how the Federal Reserve might go forward in terms of monetary policy. Consumer Price Index reports later this month will be very interesting.
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 0.9200 any break below targets 0.92250/0.9275.
Support Levels and Potential Declines
On the downside, near-term support is around 0.9125, any violation below will drag the pair to 0.9100/0.9070/0.9030/0.9000/0.8940/0.8890.
Bullish Indicators
CCI (50) - Bullish
Directional movement Index - Neutral
Trading Strategy Recommendation
It is good to sell on rallies around 0.9168-70 with a stop-loss at 0.9200 for a TP of 0.9070.
