EURUSD has broken below important short-term support and combined with the inability to stay above 1.09-1.0950, we expect selling pressures to continue. Daily trend remains bearish and the 4 hour trend has changed back to bearish as price has broken through cloud support.
Black lines - expected path equal to previous downward move
EURUSD is trading below the cloud in the 4hour chart. Price has broken below support at 1.0930-1.0880. Price is getting rejected when bulls try to test the 4hour cloud. This is a bearish sign. All Ichimoku cloud indicators imply more downside is to be expected.
Red lines - triangle pattern
EURUSD has broken the triangle pattern downwards. Price is now back testing the lower triangle boundary. A rejection and a new lower low below 1.08 will open the way for a move towards 1.06 where this downward move is equal with the first leg down. Resistance remains key at recent high of 1.0990 area. Bulls need to break above this level in order to reclaim control of the short-term trend.
