FX.co ★ Ichimoku cloud indicator analysis of EURUSD

EURUSD reached yesterday our 1.2350 target and today is pulling back towards cloud support. Price is trading just above 1.2250 where we find key short-term support. The Ichimoku cloud so far provides robust support at 1.2250. Price touched the cloud and is now bouncing. This is bullish behavior.

EURUSD is trading below the tenkan-sen (red line indicator) and the kijun-sen (yellow line indicator). Resistance by the tenkan-sen is at 1.2296 and by the kijun-sen at 1.2280. Bulls need to recapture these two levels in order to hope for a move higher towards 1.2450-1.25. Trend remains bullish in the short-term as long as price is above the Kumo (cloud). Breaking below 1.2250-1.2225 would signal a change in the 4 hour trend.