FX.co ★ Ichimoku cloud analysis on EURUSD

EURUSD is ending the week at its lowest levels. Having reached our target 1.2220, it is a bearish sign to see such a strong reversal. Price tried to break out above the Ichimoku cloud (Kumo) but it got rejected and is now challenging the lower cloud boundary. Trend remains neutral in Ichimoku terms.

EURUSD remains inside the Kumo. Price has crossed below the tenkan-sen and the kijun-sen indicators. This is a sign of weakness. Breaking below 1.2045, where we find the Kumo lower boundary, this would be bearish. If the tenkan-sen (red line indicator) crosses below the kijun-sen (yellow line indicator) then we have another bearish signal. The Chikou span (black line indicator) is below the candlestick pattern and this is also bearish. So far the Ichimoku cloud indicator on a Daily basis provides us with bearish indications. EURUSD is more likely to continue lower.