EUR/USD has been trading mostly sideways for the last few weeks within a trading range between 1.15 and 1.1250. Price has been trading around the Ichimoku cloud since late January but has not managed to break away from this indicator. Watching closely at the chart we observe how support is found around 1.1250-1.1260 and how price has been giving strong jumps once we touch that level.
EUR/USD Chart
The rise from its January lows does not look impulsive to me. The Elliott wave structure of the rise is more probably a corrective bounce rather than a trend reversal signal. That is why I believe it is more probable to see the resumption of the down trend rather than a bigger reversal to the upside. Once support at 1.1250-1.1260 is broken I will have a confirmed sell signal with target just above 1.10, distance equal to the height of the last bounce towards 1.15.
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