The stronger US data pushed the pair to a 1-year high at 0.9783. Economic activity in the non-manufacturing sector grew in November for the 58th consecutive month, according to the nation’s purchasing and supply executives in the latest Non-Manufacturing ISM report. At yesterday's session, the pair gained 60 pips and closed at the highest level of the day. The pair touches the top end of the channel. In case if the prices are closed above the top end of the channel on a 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 favors buying on dips. The hourly momentum indicators, are showing an overbought sign. We recommend fresh buying above 0.9785. The pair has resistance at 0.9805. We can expect strong momentum only above 0.9805 towards 0.9850 and 0.9870. The pair has support at 0.9730 and 0.9715, below this 0.9688 and 0.9670 will act as strong support levels. Today, the focus shifts to the US unemployment data.
