FX.co ★ Ichimoku cloud indicator analysis of EURUSD

EURUSD in the 4 hour chart remains in a bullish trend as price is above the 4 hour Kumo (cloud). Support by the cloud is at 1.2070-1.2050. However as we explained in our last analysis, EURUSD is vulnerable to a pull back and a test of this critical short-term support.

This vulnerability for a move below 1.21 is also shown in the 4 hour chart using the Ichimoku cloud indicator. Price is trading below the tenkan-sen and the kijun-sen indicators. These two indicators provide resistance at 1.2125-1.2130. Furthermore the slope of the tenkan-sen (red line indicator) is negative and we could soon have a weak bearish signal if the tenkan-sen crosses below the kijun-sen (yellow line indicator). I expect support by the cloud to be challenged soon. Breaking below the cloud will open the way for a move below 1.1950.