EURUSD – downside bias persists while trading below daily cloud

The Euro softened in early Thursday trading, signaling that near-term bears from the 1.1728 lower top (Oct 17) are regaining control after Wednesday’s brief and limited recovery attempt.

The pair remains firmly below the relatively thick daily Ichimoku cloud, which continues to exert pressure, as Wednesday’s rebound stalled under initial barriers at 1.1631/35 (Fibo 23.6% of 1.1918/1.1542 / daily Tenkan-sen), while the cloud base at 1.1655 continues to cap the upside.

Technical indicators on the daily chart remain bearish — the 14-day momentum extends deeper into negative territory, RSI holds near 42, and moving averages maintain a clear bearish alignment — all supporting the scenario of a further slide towards trendline support at 1.1566 and potential retest of the recent higher base at 1.1542, established over the past two weeks.

A firm break below 1.1542 would strengthen negative signals, confirming continuation of the bearish failure swing pattern and opening the way towards the 1.1400 area, marking the higher base from late July to early August.

Res: 1.1635; 1.1655; 1.1686; 1.1700
Sup: 1.1566; 1.1542; 1.1500; 1.1391