FX.co ★ Cloud rejection in EURUSD.

EURUSD reached as high as 1.0583 yesterday right at the lower cloud boundary. The daily candle closed around 1.0534 and today price is under pressure with EURUSD at 1.05. Today's price action points to a cloud/resistance rejection. Price not only is getting rejected by the cloud but also by the kijun-sen (yellow line indicator). We noted yesterday that around 1.0580 there is a confluence of resistance levels. Price is now trading below yesterday's lows. As long as price is below 1.0585 we are pessimistic. Price is vulnerable to more downside. Bulls need to be cautious. They need to break above 1.0580 in order to hope for a move towards the upper cloud boundary at 1.0760.