Fundamentals
Technicals
- The Dollar index showed resilience, settling around 103.3 after paring recent gains, following robust S&P Global manufacturing and services PMIs, signalling robust US business activity.
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- S&P Global US Composite PMI surged to 52.3 in January 2024, showcasing a robust increase from the previous month and signalling the most rapid rise in business activity since June 2023.
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- Notably, service sector activity reached its highest point in seven months, contributing to the overall positive momentum, while manufacturing firms saw a moderate drop in output.
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Technicals
- Prices are testing the resistance zone at 103.50, which aligns with the Fibonacci confluence levels and the 200 SMA.
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- Prices could retrace from this zone, finding support at 101.00.
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- Conversely, a successful breakthrough of the 103.50 resistance could pave the way for an extended upward movement, with 104.50 as the next resistance.
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- It is noteworthy that the 200 SMA acts as a dynamic resistance on the daily timeframe.
- Additionally, the RSI hovering near the overbought region suggests a limited potential for further upside in prices.