The currency pair trades in a narrow range ahead of US Fed monetary policy. It hit an intraday high of 0.90635 and is currently trading around 0.90634. The intraday bias appears bearish as long as the resistance level at 0.9150 holds.
On January 29, 2025, core durable goods orders were reported to increase by 0.3%. This is smaller than the predicted 0.4%, but better than last month when it dropped to -0.2%. Durable goods orders fell in total by 2.2%, whereas it was a small growth that was projected. The S&P/CS Composite-20 Home Price Index had increased to 4.3%. However, monthly changes were below predictions. Consumer confidence also fell remarkably, with the view of the economy currently being very negative.
Markets eye Fed monetary policy today for further direction.
Technical Analysis and Resistance Levels
The pair is trading above the 34-EMA and below the 34-EMA on the 4-hour chart indicating a mixed trend. The immediate resistance is at 0.9070 any break above targets is 0.9010/0.9150/0.9200/0.92250/0.9275.
Support Levels and Potential Declines
On the downside, near-term support is around 0.9030, any violation below will drag the pair to 0.9000/0.8940/0.8890.
Bullish Indicators
CCI (50) - Bearish
Directional movement Index - Neutral
Trading Strategy Recommendation
It is good to sell on rallies around 0.9070 with a stop-loss at 0.91250 for a TP of 0.8890/0.8845.
