EURUSD warnings pay off as price pulls back towards our first target

EURUSD has broken below 1.1120 and has reached our first pull back target of 1.1070. Price is now challenging the daily upper cloud boundary support and I expect the decline to pause at this area. If the decline in price continues, we should expect to see 1.1020 next.

The Chikou span (dark green indicator line) got rejected yesterday as we mentioned in our previous analysis. The resistance at 1.1180 was important. The rejection has led price to pull back towards the tenkan-sen (1.1120), while failure to stay above it has lead to a move towards the upper cloud boundary. Inability to hold above 1.1070-1.1060 will push price towards 1.1020 if not lower.