XM Group - Analytics

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    Technical Analysis – EURUSD: fall below cloud strengthens bearish bias

    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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