FX.co ★ Ichimoku cloud indicator analysis on EURUSD for November 4th.

EURUSD is trading around 0.9820. Friday's are excellent days where a counter trend move usually occurs as traders prefer to realize their profits from the week ending. A down week has given bears a lot of profits and it is normal to see a bounce on Friday as bears take profits. This is also common technically speaking. After a cloud break we usually see price back testing the cloud boundaries. In this case we saw two days ago price break below the cloud and is now bouncing as a back test. Resistance by the cloud lower boundary is at 0.9830. Next resistance is at the kijun-sen (yellow line indicator) at 0.9865. If bulls manage to break above the kijun-sen, then I will expect price to test the upper cloud boundary at 0.9952. As long as price is below the Kumo (cloud) we remain bearish.