EUR/USD is in the grip of a strong technical downtrend with the pair on course to reach 1.1450 before the end of this year.
The move down from 1.2150 began with the Federal Reserve's more hawkish than expected outlook on June 16 and strengthened following a break into the weekly Ichimoku cloud at 1.1870 at the start of July.
Since that point EUR/USD has worked steadily lower to 1.1701 within the cloud as traders pare bets made on EUR/USD rising and the cloud base at 1.1493 is the target for this down move.
The achievement of that target is heightened by the presence of the monthly Ichimoku cloud twist at 1.1448-50 in November.
Twists are often magnetic.
The 1.1450 area is of major importance as it was the breakpoint for the big EUR/USD rally that began in July 2020 which reached 1.2349 this year.
Should it be seen again traders will probably be short, heightening the chance it is the end point for this decline.
Related comments nL1N2PP0DRnL1N2PP0GD
For more click on FXBUZ