The currency pair pared some of its gains after easing trade uncertainty. It hit an intraday low of 0.90813 and is currently trading around 0.90910. The intraday bias appears to be bearish as long as the resistance 0.9200 holds.
The US ISM Manufacturing PMI for January 2025 is at 50.9%, thus recording the first instance of a rise in the manufacturing sector in 26 months. It rose from 49.2% for December 2024. The New Orders Index increased to 55.1%, and the Production Index increased to 52.5%, reporting positive growth. The Employment Index also recorded a rise to 50.3%, and it points to job stability in that sector. Overall, it shows that the economy remains to expand with the current condition of manufacturing getting better.
Technical Analysis and Resistance Levels
The pair is trading below the 34-EMA and above the 55-EMA on the 4-hour chart indicating a mixed trend. The immediate resistance is at 0.9150 any break above targets 0.9200/0.92250/0.9275/0.9030.
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) - Bullish
Directional movement Index - Bullish
Trading Strategy Recommendation
It is good to sell on rallies around 0.9100 with a stop-loss at 0.9150 for a TP of 0.9000.
