EURUSD breaks above medium-term bearish channel.

EURUSD is trading close to 1.14 and has now broken out and above the bearish medium-term channel from the 1.2265 high. EURUSD continues for the fifth day to be positive. Breaking out of the bearish channel is the first step to confirming that a major low is in.

In Ichimoku cloud terms price has entered the Ichimoku cloud (Kumo) and this implies that trend is now neutral. If bulls manage to break above the cloud resistance at 1.1440, we will have a confirmation by the Ichimoku indicator that trend has turned bullish on a daily basis. EURUSD recent highs at 1.1483 are also very close to the upper cloud boundary. Bulls need to break above this level in order to confirm the end of the decline from 1.2265 and the start of a new upward move. Support is at 1.13. Bulls need to defend this level in order to remain in control of the short-term trend.