FX.co ★ Ichimoku cloud indicator analysis on EURUSD for March 6th, 2023.

Last week we noted that EURUSD provided a bullish reversal signal in the 4 hour chart according to the Ichimoku cloud indicator. With EURUSD price breaking above the Kumo (cloud) we got a bullish reversal changing trend to bullish. The last time EURUSD was above the cloud was at the beginning of February. EURUSD at today's open turned lower to back test the cloud support. Price is bouncing off the cloud support and now and as long as this is the case, we remain cautiously bullish. Price is above the tenkan-sen (red line indicator) and the kijun-sen (yellow line indicator). These two indicators provide support at 1.0630-1.0615 where we also find the upper cloud boundary. The Chikou span (black line indicator) is above the candlestick pattern. This is a promising sign for bulls. Bulls now want to see the tenkan-sen cross above the kijun-sen in order to get an added bullish signal. As long as price is above 1.06 bulls are safe.