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02.04.202014:50 Forex Analysis & Reviews: EURUSD forms bearish channel

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EURUSD is breaking below recent lows and creates a bearish channel. Trend is bearish as price is making lower lows and lower highs. Price is expected to continue to move lower towards 1.07-1.06 as we explained in previous posts when price broke below 1.10-1.1030.

Red lines - bearish channel

EURUSD got rejected at the major Fibonacci retracement level of 61.8% as expected. Price has reversed trend at that area and is now moving lower. Short-term resistance is at 1.0965 and support at 1.0850.

As we explained in yesterday's analysis, EURUSD is showing bearish signals according to the Ichimoku cloud indicator. So far we started with a weak sell signal when price broke down below the tenkan-sen (red line indicator) and when the tenkan-sen crossed below the kijun-sen (green line indicator). We warned yesterday that a break inside the cloud and below it would be another bearish sign and that is exactly what we got today. The Chikou span (black line indicator) is also breaking below the candlesticks and this is another bearish sign. Bears are taking control of short-term trend once again.

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