FxWirePro: Sell EURUSD on rallies
Candlestick pattern- Bearish engulfing
Ichimoku Analysis (4-hour chart)
EURUSD continues to trade weak after hitting a 2-year high 1.19050 despite strong Eurozone PMI. It came at 51.8 in July compared to a forecast of 51.1. The US GDP released on Friday came much worse at –32.9% annualized vs Eurozone GDP of -12.1%. Markets eye US ISM manufacturing index data, which is to be released today for further direction. It hits an intraday low of 1.1750 and is currently trading around 1.17526.
The pair is facing significant resistance at 1.1800, the break above confirms minor bullishness, a jump till 1.18445/1.1900 likely. The near term support is around 1.1720, violation below will take the EURUSD till 1.1690/1.1625.
It is good to sell on rallies around 1.1778-80 with SL around 1.1850 for the TP of 1.1660.