The currency pair showed a minor sell-off after weak US jobs data. It hit a low of 0.8970 and is currently trading around 0.90147. The intraday bias appears to be bearish as long as the resistance 0.9071 holds..
Philadelphia Fed Index: Manufacturing Slowdown.
The Philadelphia Fed Manufacturing Index for Feb. 2025 was 18.1, declining precipitously from 44.3 in Jan. and below the market consensus estimate of 19.4. While remaining on positive ground, reflecting continued improvement, the sudden drop reflects weakening growth momentum in the region's manufacturing sector. The fall may reflect issues such as cooled demand or supply chain issues to impact production levels. As a closely monitored indicator of business conditions, this decline could affect economic forecasts and opinions regarding the U.S. economy.
New unemployment claims rose modestly to 219,000. That was a bit more than what analysts were predicting. While it rose, the number of people applying for unemployment remains relatively low, comparable to pre-pandemic. The average number of claims over the last month also rose modestly. Also, the number of people still on unemployment rose, meaning some people are still having trouble finding work.
Technical Analysis and Resistance Levels
The pair is trading below the 34-EMA and 55-EMA on the 4-hour chart indicating a mixed trend. The immediate resistance is at 0.9070 any break above targets 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 0.9000, any violation below will drag the pair to 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 0.90580-60 with a stop-loss at 0.9100 for a TP of 0.8940/0.8900.
