FX.co ★ Bearish reversal in EURUSD

EURUSD bulls could not hold price above 1.0950-1.0960 and the bullish signals we got yesterday all got wiped out very fast. Price now is in danger of giving strong bearish signals with downside potential to 1.06 and lower.

EURUSD has broken back inside the Kumo (cloud) support. Price has broken below both the tenkan-sen and kijun-sen. This price action is something that bulls did not want to see. Price could not stay above the cloud and is in danger of breaking below the 4 hour Kumo. The 4 hour chart is turning bearish again. The Daily time frame remains bearish and any hopes for a bigger bounce and reversal are destroyed by this price action.

EURUSD is still in a longer-term bearish trend. Price is turning lower today and as long as price is below 1.0990 I expect price to reach the 1.06 level and lower. Breaking the recent lows is a bearish sign.

Blue lines- triangle pattern

EURUSD is inside this blue triangle as shown in the Daily chart above. Support is key at 1.0840, both from the trend line support and by the Ichimoku cloud in the 4 hour chart as shown in the charts above. Breaking below 1.0840 will be an added bearish sign that will increase the chances of price moving towards 1.06.