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Hugo in HTO Trading,

EURUSD: Bearish engulfing at a daily resistance

Yesterday, better-than-expected US home sales figures pushed the EURUSD pair into a downward spiral breaking below the daily resistance zone.

Today on the economic calendar we have from the US the consumer price index in September that is expected to fall from 1.7% to 1.6% reflecting that inflation is not increasing and the FED may not raise the interest rates any time soon.

EURUSD initially tried to rally during yesterday session but found enough resistance at 1.2840 near the 50 day moving average closing near the low of the day and below the opening of the previous day, making a bearish engulfing pattern.

Expecting downward move to 1.2617 (scenario 1) or even to 1.2500 (scenario 2) on a break below previous day low at 1.2714.