EURUSD breaks support and reaches our short-term pull back target.

EURUSD broke below our key short-term levels we noted yesterday using our Ichimoku cloud indicator. Price has reached our target area and we must say that this is an important support on a daily basis.

Price has broken below both the tenkan-sen and kijun-sen indicators and has reached our target area of 1.1850-1.1820. The Chikou span (black line indicator) is touching the candlestick pattern from above. The Chikou span is testing support. Next support level is at 1.1810. Bulls do not want to see price break below this level on a daily basis. Failure to hold above 1.18 would be a bearish sign and could imply a deeper correction is coming for EURUSD. For now we consider this as a pull back and expect price to bounce strongly off 1.18 area. This is a buying level with stops at 1.18 on a daily basis.The material has been provided by InstaForex Company - www.instaforex.com