FX.co ★ EURUSD appraoches short-term support

EURUSD has broken below 1.21 as we warned traders. EURUSD was vulnerable to a move lower and this is exactly what is happening now. Price is approaching important short-term support. Daily trend in Ichimoku cloiud terms remains bullish.

EURUSD is above the Daily Kumo. Price is pulling back towards the tenkan-sen (red line indicator). This is support at 1.2040. Breaking below this level will open the way for a move towards 1.19. Currently I do not expect price to fall below 1.2040.

In the 4 hour chart EURUSD is approaching the Kumo (cloud) support. Staying above the Kumo and specifically above the lower cloud boundary (1.20) is key for bulls. Inability to hold above 1.20 will bring more pressure on EURUSD. Bouncing off cloud support would be a bullish sign. Resistance is found at 1.2110-1.2125. Recapturing this level will be a sign that bulls are back in full control of the trend.