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EURUSD resumes downtrend to target 1.12

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EUR/USD touched a new 11-year low of 1.1313 today. After several tests of key resistance at 1.1650 the pair moved another leg lower to resume the downtrend it has been in since May 2014 (1.3992).

There is scope to target the long term Fibonacci retracement level of 61.8% at 1.1209. This is of the upleg from 0.8225 to 1.6038. Any rebound would meet resistance at 1.1650. A break of this level would pause the downtrend in the near term, otherwise the long term outlook remains bearish. The market is below the Ichimoku cloud and the tenkan-sen and kijun-sen lines are negatively aligned. RSI is in bearish territory although currently at oversold levels.

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