EUR/USD Expected Lower

Alexandros Yfantis • Jun 23, 2017 at 7:47 AM EDT

EUR/USD got rejected for the 2nd time by the Ichimoku cloud. This is a bearish sign.

EUR/USD got rejected for the 2nd time by the Ichimoku cloud (Kumo) in the 4 hour chart. This is a bearish sign.

(Click on image to enlarge)

The trend remains bearish as the price is trading below the Kumo (cloud). The first rejection at 1.1210 leads to a nearly 100 pip decline towards 1.1117. Will we have a similar price action lower towards 1.1050?

(Click on image to enlarge)

In the daily chart above we see the price has broken below both the tenkan- and kijun-sen. Usually, price behavior like this implies that we should expect the Dollar index to move towards the daily Kumo (cloud) support around 1.10. Only a break above 1.1220 could change this short-term view.

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