Price made a large long wick candle during previous session and was unable to make a clean break below the cloud even if price in the end closed 3 pips below.. In my analysis I differ between a clean break or a close below. As in yesterdays close, a shy break still hints of bears being in control, even if it lacks power. A clean break produce a big body candle and a close that doesn't open inside the cloud on the following session.
A close today below 1,0759 will create a clean break. After the Jan 11, the cloud will diminish and support become weaker.
Yesterday also saw a sharp drop on Chinese stock market which spilled over to the rest of the world. The Jpy strengthed against all majors and thus it was a pure "risk off" move. We may see more of this theme going forward, which will weigh on EurUsd.
With a bearish MACD cross, shorts are favoured. Important pivot support comes in at 1,0736, Weekly S3. A close above yesterdays open, will probably take price back to the range with further upside towards upper cloud or 1,10.