Intraday bias remains bullish as long as support 0.84990 holds. It hit a high of 0.86026 at the time of writing and is currently trading around 0.85960.
The PPI for final demand was flat in September after a 0.2% previous month, below the forecast of 0.10%. The annual PPI rose to 1.8% compared to an estimate of 1.6%. Core PPI fell to 0.20% from 0.30% the previous month.
Technicals-
The pair is trading above 34 and 55 EMA in the 4-hour chart.
The near-term resistance is around 0.8620 any break above targets 0.8660/0.8698/0.8750. The bearish pattern from 0.92244 will be completed at 0.8375 if the pair closes above 0.8750. A jump to 0.8800/0.8925 is possible. The immediate support is at 0.8530, any violation below will drag the pair to 0.84990/0.8440/0.8420/0.8390/0.8365 (61.% fib projection)/0.8340.
Indicator (4-hour chart)
CCI (50)- Bullish
Average directional movement Index - Neutral. Overall trend is mixed.
It is good to buy on dips around 0.8550 with SL around 0.84990 for a TP of 0.8660/0.8698.
