The pair touched the top end of the channel and fell sharply. The US data gave an optimistic view on the labour market. In the week ending November 29, the flash figure for seasonally adjusted initial claims was 297,000, a decrease of 17,000 from the previous week's revised print. The pair was sold off in yesterday's session, but managed to hold the descending trend line. The pair managed to erase half of its intraday losses and closed at the breakout level. The prices are facing strong resistance at 0.9720 levels, above this 0.9740 is the other resistance level. In case if the prices are closed above the top end of the channel on daily basis, it adds more bullish thoughts. We have been recommending buying on every dip at 0.9820, 0.9874, 0.9970, and 1.0270. Bulls must be able to close above 0.9742 on a weekly closing basis. Until the prices close above 0.9650, the pair favours buying on dips. From an intraday view, we recommend buying above 0.9720 levels.
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