EURUSD has dipped below the lows of the range it has been trading in since April 2015 (on daily chart). After Friday’s big tumble following a strong US nonfarm payrolls report, the pair reached a low of 1.0705, the lowest in six months. The focus is now on the key psychological level of 1.0500 and the March low of 1.0461.
With the market below the daily Ichimoku cloud and below the 200-day moving average, including a bearish cross of the tenkan-sen with the kijun-sen line, the bias is increasingly bearish for EURUSD. Momentum is also indicating a bearish bias as the RSI is below 50.
A move back above 1.0807 would bring the market bias back to neutral. Only a break above the top of the range at 1.1713 (August 24 high) would weaken the bearish bias. In the bigger picture, EURUSD was in a downtrend from 1.3992 (May 2014 high) down to 1.0461 (March 2015 low) and has since been consolidating.
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