Harmonic pattern- Classic AB=CD pattern
Potential Reversal Zone (PRZ) - 1.1240
EURUSD has halted its 1- month of the bullish trend and lost more than 50 pips from 4 –month high of 1.12390. The pair jumped more than 250 pips on broad-based US dollar selling. President Trump said that the US-China phase one trade deal will be signed on Jan 15th. The Brexit headlines and trade war is a factor to be watched this month. The IHS Markit' PMI came at 46.3, contracted for 11th consecutive month.
Technically, near term support is around 1.11780 and any violation below will drag the pair down till 1.11329 (200-H MA)/1.1100.
On the higher side, resistance is at 1.1240 and indicative break above targets 1.12885/1.1300.
It is good to sell on rallies around 1.11925-50 with SL around 1.1240 for the TP of 1.1100.
