EURUSD forms Big M pattern, good to sell on rallies

10月7日

Chart Pattern- Big M

Potential Reversal Zone (PRZ)- 1.12150

EURUSD declined after upbeat US jobs data. It hit a low of 1.109588 yesterday and is currently trading around 1.109750.

Intraday bias remains bearish as long as resistance 1.1060 holds.

 The pair is trading below  34- and 55 EMA in the one hour chart.
 
The near-term resistance is around 1.10600, a breach above targets 1.10850/1.11050/1.1150. Major bullish continuation only above 1.1150. A jump above will take the pair to 1.11780/1.12150.The immediate support is at 1.1000, any violation below will drag the pair to 1.0945/1.0900.
 Indicator ( hourly chart)
 
CCI (50)- Bearish
 
Average directional movement Index - Bearish. All indicators confirm a bearish trend.
 
Sell on rallies around 1.1000 with SL around 1.1050 for TP of 1.09250.