Intraday trend – Bearish
Significant intraday support – 0.9090
The pair declined sharply more than 100 pips on board-based US dollar weakness. The producer price rose by 0.20% from the previous month and annual inflation gained 9.7%. The US dollar index continues to trade weak for the fourth consecutive week. It hits an intraday low of 0.90920 and is currently trading around 0.90978.
Bullish scenario-
The primary levels to Watch – 0.9150. Any convincing surge above confirms intraday bullishness. A jump to 0.9200/0.9230/0.92750 is possible.
Bearish scenario-
Intraday support – 0.9090. Break below that level will take the pair to 0.9050/0.900.
Indicators (4-Hour chart)
Directional movement index – Bearish
CCI (50) - Bearish
It is good to sell on rallies around 0.9138-40 with SL around 0.9180 for TP of 0.9000.