EURUSD bounced higher as expected towards the Ichimoku cloud but got rejected. Price is making new lower lows towards 1.0750 which was our longer-term target after the reversal at 1.1180 and the break below 1.0950.
The Ichimoku cloud indicator is all bearish for EURUSD. Price is below the cloud, below the tenkan-sen and kijun-sen indicators. The tenkan-sen has crossed below the kijun-sen and the Chikou span (black line indicator) is below the candlestick pattern. As long as price is below today's highs bears will remain in full control of the trend. Despite making new lower low the RSI has not provided a new lower low, instead it produced another bullish divergence.
Green lines bullish divergence
The RSI bullish divergence is only a warning and not a reversal signal. So far trend remains bearish. There is no sign of a reversal yet.
