FxWirePro: EUR/USD forms bearish engulfing pattern on 2 hour chart, good to sell on rallies (Intraday only)
Candle stick pattern – Bearish Engulfing pattern. EURUSD has jumped sharply almost 150 pips in the past two days. The main reason for jump is better than expected Euro zone economic data. The pair hits high of 1.24593 an…
EURUSD has jumped sharply almost 150 pips in the past two days. The main reason for jump is better than expected Euro zone economic data. The pair hits high of 1.24593 and shown a minor decline from that level. It is currently trading around 1.24250.
Market awaits ECB monetary policy decisions for further direction. ECB has reduced its bond buying program form 60 billion euros to 30 billion and to end its QE by Sep 2018. Markets awaits next step on interest rates outlook by ECB in today’s meeting for further direction.
The near term resistance is around 1.2600 (61.8% fibo) and any break above will take the pair to 1.3000.
On the lower side, near term support is around 1.2370 (10- 4H MA) and any break below will drag the pair to next level till 1.2337 (4H Kijun-Sen)/1.2300. Minor weakness below 1.2200.
It is good to sell on rallies around 1.2425-30 with SL around 1.2460 for the TP of 1.2337/1.2300.
