FX.co ★ Ichimoku cloud indicator analysis on EURUSD for May 1st, 2023

EURUSD is trading around 1.0995. Price is under pressure forming another lower high as price enters the 4 hour Kumo (cloud). With price below both the tenkan-sen (red line indicator) and the kijun-sen (yellow line indicator), EURUSD is vulnerable to more downside. The Chikou span (black line indicator) is below the candlestick pattern (bearish). Support by the lower cloud boundary is at 1.0993. EURUSD is vulnerable to more downside. A break below the cloud will imply more weakness should be expected. Current price action suggests that it is more likely to see price break below the cloud and produce a new bearish signal. In order for bulls to regain control of the near term trend, price must break above 1.1005. So far price was respecting the cloud support. Failure to do so will be a sign of weakness and more downside to come.