FX.co ★ Ichimoku cloud indicator analysis on EURUSD for May 2, 2022.

EURUSD is in negative territory after the relief bounce on Friday. Price reached very close to 1.06 on Friday but bulls were unable to close near the highs. EURUSD remains under pressure and vulnerable to more downside. In Ichimoku cloud terms trend remains bearish in the 4 hour and Daily chart.

Despite the bounce from Friday, price remains well below the first important resistance level at 1.07 where we find the tenkan-sen (red line indicator) in the Daily chart. A bounce towards that level is justified and the FOMC meeting of this week could be the trigger. I do not expect to see much price action until the Fed meeting. Traders need to be cautious as volatility will spike after the FOMC. Daily trend remains bearish as price is well below the Kumo (cloud).