FX.co ★ Ichimoku cloud indicator analysis on EURUSD for December 1st, 2022.

EURUSD is in a bullish trend according to the Ichimoku cloud indicator. Price remains above the 4hour cloud and above both the tenkan-sen (red line indicator) and the kijun-sen (yellow line indicator). The Chikou span (black line indicator) is above the candlestick pattern (bullish). Support by the kijun-sen and tenkan-sen is at 1.04-1.0380. As long as price is above this level bulls have the upper hand and we expect to see higher levels. A cross of the tenkan-sen above the kijun-sen will also provide a new bullish sign.

Red lines- bearish divergence

Despite the new higher high, the RSI has made a lower high and provided us with another bearish divergence. The upside momentum is weakening. Bulls need to be very cautious. According to the Ichimoku cloud indicator short-term support is found at 1.04-1.0380, however the most important support level is at 1.03. A break below this level will confirm the end of the rise from 0.9537. Bulls need to be cautious.