EUR/USD: bearish outlook
Tatiana Norkina, FBS analyst
Consolidation under the four-hour Ichimoku cloud ended with total victory of the bears. The pair broke through support of Tenkan and Kijun not testing the cloud’s lower border and continuing the major downtrend.
Market participants are still in the bearish mood which is also confirmed by the сonsidered indicators. Thus, the oscillators are directed down and the Ichimoku lines form new dead crosses and extend the cloud in the downward direction.
The location of the Chinkou Span line in oversold zone may hold the bears back a bit, forcing the pair to consolidate under the Tenkan and Kijun lines. Therefore, the sales will be examined only after testing the levels by prices of the mentioned lines.
Technical levels: support - 1.1540; resistance - 1.1600.
1. Sell - 1.1600; SL - 1.1620; TP1 - 1.1520; TP2 - 1.1490.