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

EURUSD remains in a bearish trend. Price is vulnerable to a move towards 1.1175-1.1135. We focus on the lower lows and lower highs pattern and on the trend line resistance of the RSI. Both point to a move lower.

Although Daily trend remains bullish as price is above the Kumo, we warned traders on time of the coming pull back. Price could continue its decline towards the 1.11 level where we find the kijun-sen (yellow line) indicator. Resistance is found at 1.1300 by the tenkan-sen (red line ) indicator.

Blue lines - bullish channel broken

Black line- RSI resistance

Red lines - expected path

EURUSD was expected to pull back towards the 38% Fibonacci retracement. EURUSD has potential to move towards the 100% extension of the first leg down, towards the 50% retracement. As long as price is below 1.1260 and as long as the RSI is below the black trend line, we remain bearish.