EURUSD is hovering at 2-year lows of 1.2164. The pair has pushed another leg lower after a consolidation period around 1.2360. Bearish sentiment is reinforced by a falling RSI and falling MACD – both indicators are in bearish territory. Also the market is below the Ichimoku cloud and below the tenkan-sen and kijun-sen lines. The falling 200-day moving average supports the bearish bias.
The pair is close to testing the 50% Fibonacci retracement level of the upleg from 0.8225 (in 2000) to 1.6038 (in 2008). This level comes in at 1.2136. A break below this would target the July 2012 low of 1.2040.