FX.co ★ Ichimoku cloud analysis on EURUSD

EURUSD is bouncing as expected, however trend remains bearish. Price is still below the 4 hour Ichimoku cloud and in order to change trend to bullish, price must break above 1.1870. Price has provided a weak bullish signal by moving above the tenkan-sen and kijun-sen indicators.

Price has provided us a weak bullish signal because price is still below the Kumo (cloud). Support by the tenkan-sen and kijun-sen indicators is at 1.1750. As long as price is above 1.1750 we expect price to move towards cloud resistance at 1.18-1.1820. A rejection at the cloud resistance will be a bearish sign. If price fails to stay above 1.1750 it will be a bearish sign again. A new lower low below 1.17 can not be ruled at this point. There are a lot of chances of this happening. In order to say that an important low is in, bulls need to push price above 1.1870.