FX.co ★ Ichimoku cloud indicator analysis on EURUSD for May 5, 2022.

EURUSD yesterday reached the Kumo resistance in the 4 hour chart and got rejected. Bulls were unable to recapture the 1.06-1.07 price level. There was a brief trading period inside the cloud but the bearish turn had already began. Price started making lower lows and lower highs after topping at 1.0631.

Price is below both the tenkan-sen (red line indicator) and the kijun-sen (yellow line indicator). Both provide key short-term resistance at 1.0570. Just above this level we find the lower cloud boundary. Bulls need to push price above 1.0570 and most importantly inside the cloud above 1.0580. Bulls need to defend 1.0490. As long as price is below the Kumo, price is vulnerable to more downside.