Harmonic pattern formed- Bearish Gartley pattern
Potential Reversal Zone (PRZ)- 1.1340
EURUSD I trading higher for past 7 trading session. It has formed a minor bottom around 1.11850 and jumped nearly 120 pips. The jump was mainly due to technical pullback. Markets have digested dovish ECB policy and Fed minutes. US PPI data came yesterday was slightly better than forecast and markets eye UoM consumer sentiment data.The pair hits high of 1.13099 and is currently trading around 1.13087.
The yield spread between US 10 year and German bunds has widened from 241 basis point to 251 basis point.
On the higher side,1.1350 (100- day MA) and any violation above targets 1.1380/1.14200.Any break above 1.1450 confirms minor trend reversal.
The near term support is around 1.1274 (20- day MA) and any break below confirms slight weakness and a dip till 1.1230/1.1200 is possible. Any break below 1.11760 confirms that bullish trend has stopped at 1.14482 and decline till 1.1100 is possible.
It is good to sell on rallies around 1.13350-370 WITH SL around 1.13800 for the TP of 1.1255/1.1200.
