Intraday bias remains to the downside for EURUSD after breaking below the daily Ichimoku cloud on Thursday. The RSI is back below 50 which suggests limited upside momentum. The 200-day moving average is critical as prices are testing this area around 1.1109. Failure to provide support will see prices move down towards the July 20 low of 1.0807. To the upside, the base of the cloud and the 50-day moving average are acting as a strong barrier around 1.1259.
Looking at the bigger picture, on the weekly chart, the market still remains in a range and within the corrective pattern of the downtrend that took place from 1.3992 (May 2014) to 1.0461 (March 2015). A break below this low would see a resumption of the downtrend.
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