EURUSD is very close to our target and major Fibonacci support area of 1.17. Trend in Ichimoku cloud terms remains bearish. We use the indicator in order to identify key resistance levels that if broken could provide the early signals of a possible reversal.
EURUSD is of course trading below the Ichimoku cloud in the 4 hour chart and below both the tenkan-sen and the kijun-sen indicators. Resistance by the tenkan-sen is at 1.1752 and by the kijun-sen at 1.1774. Bulls need to break at least these two resistance levels in order to have some hopes of a trend reversal. Recapturing 1.1850 is key for the reversal scenario. However there is no sign of reversal yet and any bounce is still considered as a corrective pause to the downtrend.
EURUSD is approaching major Fibonacci support. The 38% Fibonacci retracement was our target since the reversal from 1.2350. There are many chances of at least a strong bounce from the area around this Fibonacci support. Bears need to be cautious.
