Chart pattern-Bearish engulfing
Ichimoku Analysis (2-Hour chart)
Tenken-Sen- 1.08637
Kijun-Sen- 1.08404
EURUSD has lost more than 60 pips from an intraday high of 1.08965 on Fed Powell's speech and weak PPI. Fed Chairman Powell said that the central bank is not considering negative interest rates. The US PPI declined by -1.3% much below expectations -0.5%. It hits a low of 1.08304 at the time of writing and is currently trading around 1.08396.
The near term major support is around 1.0800, any violation below will drag the pair down till 1.07600/1.07200. Any break below 1.0720 confirms bearish continuation, a dip till 1.0650/1.0600.
On the higher side, near term resistance is at 1.09000, and indicative break above targets 1.09250/1.09590.
It is good to sell on rallies around 1.0865-68 with SL around 1.0900 for the TP of 1.07600.
