FX.co ★ Short-term technical analysis of EURUSD

EURUSD is trading below 1.09 having broken below short-term triangle support. Price is vulnerable to a move lower towards 1.06 as long as price is below 1.10. Longer-term trend remains bearish.

Red lines -triangle pattern

EURUSD is back testing the broken triangle from below. Rejection here would be a bearish sign. Combined with the triangle break down we should then expect 1.0750 to be challenged. As we explained in previous analysis using Ichimoku cloud indicator, EURUSD short-term trend is turning bearish again as price is breaking below the Kumo. Target remains at 1.06 as long as price is below the recent high of 1.0990.

Price is below both the tenkan-sen and the kijun-sen. Those two indicators provide resistance at 1.09-1.0950. It is crucial for the short-term to stay below this level if we are to move lower any time soon. We favor the bearish scenario as long as we are below the 4 hour Kumo (cloud).