EURUSD has broken below the 4 hour Kumo (cloud). Price has been trading above the 4hour Kumo since early November and the start of this upward move from 1.16. Short-term trend is bearish as long as price is below the Kumo and our target is at the 38% Fibonacci retracement at 1.2060.
Cloud resistance is at 1.2260. If bulls manage to break above the tenkan-sen and the kijun-sen we might see a move towards the cloud levels. Until then, key short-term resistance levels by the tenkan-sen is at 1.2180 and by the kijun-sen at 1.2207. The Chikou span (black line indicator) has also broken below the cloud and already back tested it. All signs point to a move lower at least towards 1.2060. We prefer to be neutral if not bearish at current price levels and as long as price is below the Kumo resistance.
