FX.co ★ Short-term Ichimoku cloud indicator analysis of EURUSD

EURUSD has broken below short-term key support around 1.09 and is trading near 1.0850. Daily trend in Ichimoku cloud terms remains bearish since price is still below the Daily Kumo (cloud) resistance.

The rejection at the lower cloud boundary was an initial bearish signal supporting the scenario that this bounce was only a countertrend move. Price now is breaking below both the tenkan-sen and kijun-sen. This is another bearish signal. As long as price is below the Kumo (cloud) we remain bearish. Price reached our bounce target and after the rejection I continue to fee we are ready to test lower levels. Key resistance is at 1.0980. Support is crucial at 1.0727. Breaking below support will open the way for a move towards 1.06 and lower. What we have been waiting since we broke down below 1.10-1.1030.