Posted on February 5, 2015 by the XM Investment Research Desk at 8:44 am GMT
A break below 1.1300 would target the multi-year low of 1.1096 reached on January 26 and this will strengthen the downside bias. Alternatively, a move to the upside to break 1.1400 would give scope to target the February 3 high of 1.1532. In case of a further move higher, resistance comes in at 1.1679- the January 21 high.
Overall, the outlook for EURUSD remains bearish as the market remains below the daily Ichimoku cloud and the tenkan-sen and kijun-sen lines are falling. The RSI is in bearish territory although it is pointing north, suggesting some consolidation in the near term.