FX.co ★ Ichimoku cloud indicator Daily analysis of EURUSD

EURUSD has made an important low at 1.2050 and is now bouncing. Trend remains bullish as price is still above the Daily Ichimoku cloud and is strengthening. Trend is strengthening as bulls recapture certain resistance levels shown by the Ichimoku cloud indicator.

EURUSD is trading above the Kumo (cloud). This is bullish. Price is breaking above the tenkan-sen (red line indicator). This is another bullish sign showing the strengthening of the trend. If price manages to break above the kijun-sen (yellow line indicator) at 1.22 we will have another bullish sign. The Chikou span (black line indicator) is right on top of the candlestick pattern. This is neither bullish or bearish. Combined with the bullish hammer pattern we witnessed in a previous analysis, bulls seem to be regaining control of the short-term trend. It is important for the bullish trend to remain intact, price to hold above 1.2050 for the short-term trend, and above 1.1950 for the medium-term trend.