The currency pair showed a minor pullback after upbeat US PPI data. It hit an intraday low of 0.90641 and is currently trading around 0.90796. The intraday bias appears to be bearish as long as the resistance 0.90771 holds.
Producer Price Index (PPI) by the increase in wholesale prices increased 0.4% in January 2025. It was higher than anticipated. Core PPI, which is prices without energy and food, increased 0.3%. Overall wholesale prices are 3.5% higher compared to last year. The increase primarily came from goods and services inflation, especially that of energy. That means inflation continues to be a problem, and this could push the Federal Reserve to postpone reducing interest rates
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 0.9100 any break above targets 0.9150/0.9200/0.92250/0.9275/0.9030.
Support Levels and Potential Declines
On the downside, near-term support is around 0.9030, any violation below will drag the pair to 0.9000/0.8940/0.8890/0.8800.
Bullish Indicators
CCI (50) - Bearish
Directional movement Index - Bearish
Trading Strategy Recommendation
It is good to sell on rallies around 0.9100 with a stop-loss at 0.9150 for a TP of 0.8940/0.8900.
