The currency pair lost its shine on board-based US dollar buying. It hit an intraday low of 0.8970 and is currently trading around 0.90127. The intraday bias appears to be bearish as long as the resistance 0.90771 holds.
In January 2025, U.S. retail business sales declined 0.9% seasonally adjusted from December, a larger decrease than expected. Although this was a dip, retail sales were 4.2% above a year ago, not seasonally adjusted. Core retail sales excluding autos, gasoline, and food services declined by 0.9% month-to-month but rose by 4% from January 2024. Sales in particular industries such as motor vehicles rose by 6.4%, while food service locations registered a 5.4% increase from last year. Overall trends reflect an impending decline in consumer spending after a strong holiday season
Technical Analysis and Resistance Levels
The pair is trading below the 34-EMA and 55-EMA on the 4-hour chart indicating a bearish trend. The immediate resistance is at 0.9030 any break above targets 0.9070/0.9100/0.9150/0.9200/0.92250/0.9275/0.9030.
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 0.90348-50 with a stop-loss at 0.90750 for a TP of 0.8940/0.8900.
