FxWirePro- EURUSD Trade Idea

EUR/USD showed a minor pullback after mixed US data. It hit an intraday high of 1.04408 and currently trading around 1.04373.

On January 28, 2025, the U.S. reported a 0.3% increase in Core Durable Goods Orders for December 2024, which was in line with analysts' expectations. Such increases indicate stability in the manufacturing sector if the transportation equipment is excluded. However, overall Durable Goods Orders fell by 2.2%, which was worse than the expected 0.6% rise. A major fall was because of a significant 7.4% decrease in orders for transportation equipment. This data shows manufacturing is still under stress but with apparent strength to business investments apart from this volatile category.

Technical Analysis of EUR/USD

The pair is holding below short and long-term moving averages in the 4-hour chart. Near-term resistance is seen at 1.0465; a break above this may push the pair to targets of 1.0500/1.0535/1.0575, and 1.0600/1.0660. Major bullish momentum is likely only if prices can break above 1.0660, where levels of 1.0700, 1.0760, and 1.0800 await. On the downside, support is seen at 1.0400 any violation below will drag the pair to  1.0360/1.0300/1.0220.

Market Indicators and Trading Strategy

Commodity Channel Index (CCI)- bearish

Average Directional Movement Index (ADX) - neutral.  It is good to sell on rallies around 1.0480, with a stop-loss at 1.0535 for a target price of 1.0300.