The currency pair showed a minor pullback after US PPI data. It hit an intraday high of 0.88476 and is currently trading around 0.88415. The intraday bias appears to be bearish as long as the resistance 0.9000 holds.
In February 2025, the Final Demand Producer Price Index (PPI) was flat, with a 0.3% increase in final demand goods offset by a 0.2% decrease in final demand services. The Core PPI, which does not include food and energy, increased 0.2% for the month, while the year-over-year rate dropped to 3.3%. These figures suggest weakening pressures on inflation and a trend that will be closely monitored by the Federal Reserve in making interest rate decisions in the future since persistent or declining PPI readings would be fodder for speculation on cuts in future rates later in the year
Technical Analysis and Resistance Levels
The pair is trading above the 34-EMA and below the 55-EMA on the 4-hour chart indicating a mixed trend. The immediate resistance is at 0.8850 any break above targets 0.8890/0.8940/0.9000/0.9035/0.9070/0.9100/0.9150/0.9200/0.92250/0.9275/0.9300.
Support Levels and Potential Declines
On the downside, near-term support is around 0.8780, any violation below will drag the pair to 0.8720/0.8660/0.8600.
Bullish Indicators
CCI (50) - Bearish
Directional movement Index - Neutral
Trading Strategy Recommendation
It is good to sell on rallies around 0.8850-525 with a stop-loss at 0.8890 for a TP of 0.8720.
