FX.co ★ Bullish signs in EURUSD

EURUSD is breaking above the Daily cloud resistance. This is an important bullish sign as bulls manage to support price inside the Kumo and never left it undefended. Bulls came back stronger and are recapturing key resistance levels.

In previous analysis when using the Ichimoku cloud indicator we noted that bulls will need to push price back above the tenkan-sen (Red line indicator) and the kijun-sen (yellow line indicator). This would be the first step for a move higher. EURUSD bulls managed to push above the 1.1750-1.1780 resistance and price is now also moving above the cloud. The Chikou span (black line indicator) is also testing the candlestick pattern from below as it represents the resistance at 1.1870-1.1880. First thing bulls must do now is to defend the tenkan-sen and the kijun-sen. Price could get back inside the Kumo but bulls do not want to fall below the tenkan-sen and the kijun-sen. If price fails to hold above them then this break out would be a fake one. A back test towards the tow indicators around 1.1780-1.18 is not out of the question, but not necessary. EURUSD has now the setup for a move towards 1.21. Will bulls support it?