The currency pair lost its shine after weak US ISM PMI. It hit an intraday low of 0.89698 and is currently trading around 0.89737. The intraday bias appears to be bullish as long as the support of 0.8890 holds.
The U.S. ISM Manufacturing PMI in Feb 2025 was 50.3, from Jan's 50.9 and below market forecasts, which indicates a moderate deceleration in the U.S. factory sector after its initial growth in 26 months. Key indicators reveal a decline in new orders and production, employment falling, and increases in imports and prices. Though the sector is still in growth ground, the February figures signal a slowing momentum of growth, which may have implications for market sentiment and policy-making, more specifically related to persistent inflationary pressures.
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 0.9035 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.
Bullish Indicators
CCI (50) - Neutral
Directional movement Index - Neutral
Trading Strategy Recommendation
It is good to sell on rallies around 0.9000 with a stop-loss at 0.9035 for a TP of 0.8890.
