EURUSD is approaching our next target of 1.1750. Price remains in a bearish trend as it still below the Ichimoku cloud in the 4 hour chart. As we mentioned in our last post, as long as price was trading below 1.1850, price was vulnerable to a move lower. Support at 1.18 was broken and naturally price fell towards our next target.
EURUSD has retraced more than 50% of the entire rise from 1.1665 to 1.1909. Price was expected to reach the 61.8% Fibonacci level once 1.18 was broken. Resistance by the tenkan-sen is now at 1.1796 and by the kijun-sen at 1.1805. In other words what was once support is now resistance. At the 61.8% Fibonacci level we usually see trend reversals. If price breaks below it and stays below this will be a bearish signal.
