FX.co ★ Strong bounce in EURUSD tests bearish trend.

EURUSD is bouncing above the broken support of 1.1750 towards 1.18. In our last analysis we warned traders that a bounce could come since the bullish RSI divergence signals were already warning us.

EURUSD is bouncing strongly today towards 1.18, however according to the Ichimoku cloud indicator in the 4hour chart, price remains in a bearish trend as price is still below the Kumo (Cloud). Resistance by the cloud is at 1.1805. As long as price is below this level, trend will remain bearish. Support by the tenkan-sen (red line indicator) and the kijun-sen (yellow line indicator) is at 1.1758-1.1749. Breaking below this level will open the way for a move below 1.1680.