FxWirePro: EURUSD forms a bearish engulfing pattern, good to sell on rallies
Candlestick pattern- Bearish engulfing
Ichimoku Analysis (4-hour chart)
EURUSD halted its bullishness after hitting 2- year high at 1.098900 level. The increase in the total number of coronavirus cases, weak economic data, dovish Fed is putting pressure on the dollar. Treasury yield fallen below 0.55% yesterday after the U.S GDP record contraction. Markets eye US PCE index, Chicago PMI for further direction. It hits an intraday low of 1.18387 and is currently trading around 1.18577.
The pair is facing Significant resistance at 1.19250 and the break above confirms follow-through buying, a jump till 1.1200 likely. The near term support is around 1.1820, violation below will take the EURUSD till 1.17739/1.17200.
It is good to sell on rallies around 1.1858-60 with SL around 1.1925 for the TP of 1.1820.