FX.co ★ EURUSD bullish momentum weakens

EURUSD remains in a bullish up trend. However price is showing short-term reversal signs. Price is breaking below the tenkan-sen (red line indicator) and this usually leads to a move lower towards the kijun-sen (yellow line indicator). The pull back target is at 1.2060.

Breaking out of the cloud was an important bullish sign in the 4 hour chart. However after a break out we usually see a back test. With price breaking below the tenkan-sen we expect the pull back to start today and continue lower towards the cloud support at 1.2060. Bulls do not want to see price break below the Kumo (cloud).

On a daily basis EURUSD remains in neutral trend as price is still inside the Kumo. Price is still below the kijun-sen (yellow line indicator). Bulls need to be careful of a possible pull back towards support at 1.2060.