EURUSD today has broken below important technical and Ichimoku support area of 1.1050-1.1060. Bulls need to step in tomorrow and close the week above 1.1060-1.1070 in order to hope for a recovery next week. Otherwise we should expect more downside for the end of the month.
EURUSD has not only closed today below and out of the short-term bullish channel, but is has also closed below the Daily Kumo. Price is making lower lows and lower highs. The weak sell signal we got on January 16th as we noted in previous posts, has now been supported by a stronger sell signal when price broke below the Kumo (cloud). As long as price is below the cloud trend will be bearish. With the tenkan-sen and kijun-sen indicators in downward trend, the Chikou span breaking below the candlestick formation, bears seem to be taking over the control again. Only hope for bulls is to see price back above 1.11 again.
