FX.co ★ Short-term analysis on EURUSD using the Ichimoku cloud indicator.

EURUSD is trading around 1.08. Price has broken above the 4 hour tenkan-sen (red line indicator). This is the first sign of strength for EUR. Price has potential to move higher towards 1.0840 where we find the kijun-sen (yellow line indicator) resistance.

Trend remains bearish in the 4 hour chart as long as price is below the cloud resistance. The kijun-sen is the next important resistance level that bulls need to break in order to challenge the cloud. The tenkan-sen is now support. This support is found at 1.0788. Bulls must defend this support level. Current market conditions justify a bounce at least towards the cloud resistance at 1.0865.