EURUSD is making new lower lows. Trend remains bearish according to the Ichimoku cloud indicator. We use this indicator in the Daily chart in order to identify key resistance levels that bulls need to break in order to provide reversal signals.
EURUSD is below both the tenkan-sen (red line indicator) and the kijun-sen (yellow line indicator). Both are negatively sloped. The Chikou span (black line indicator) is below the candlestick pattern. All the above confirm that bears remain in control of the trend. Resistance by the tenkan-sen is at 1.1225. This is the first resistance level bulls will need to capture in order to hope for a reversal. Next major resistance is at 1.1275-1.13 where we find the kijun-sen and the cloud resistance. A break above the Kumo (cloud) would be a reversal signal. EURUSD bulls need to recapture 1.13. Until then bears remain in control.
