EURUSD remains below the key 1.1000 level and the fall below the lower Ichimoku cloud yesterday has strengthened the downside momentum. The cross of the tenkan-sen below the kijun-sen on July 3rd supports the bearish bias. Other indicators are also bearish, such as the RSI below 50. The market is below the 200-day moving average.
However the recent sideways consolidation pattern remains in place and we would need to see a break below 1.0818 for a move out of the range which would open the path towards the 12-year low of 1.0461. To the upside only a break above 1.1500 would shift the bearish bias.
In the bigger picture, EURUSD has been in a downtrend since the sharp decline from the May 2014 high of 1.3992.
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