In all of our previous analysis we warned of the bearish implications when price initially broke below 1.1030-1.10, and then when it broke below 1.09. Recently we noted that if the trading range of 1.08-1.09 was to be broken downwards (most likely scenario according to our Ichimoku cloud analysis) we should expect more selling pressures to push price to 1.06.
EURUSD is testing horizontal support now but I believe the move towards 1.06 is inevitable. Price is below 1.08 and looking ready to accelerate lower the next leg down. Our first target is 1.06 and I continue to expect we can see lower levels still. Resistance is at 1.09 and bulls need to break above this level if they are to hope for any bounce that could give them hopes for a larger reversal. Until then trend remains bearish.
