FX.co ★ Ichimoku cloud indicator on EURUSD for July 20th, 2023.

EURUSD is trading around 1.1150. In our previous analysis we talked about the increased chances of a pull back and the first warning signs we got. Price broke below the kijun-sen (yellow line indicator) at 1.1215 and provided us with the bearish signal. The Chikou span (black line indicator) also broke below the candlestick pattern turning bearish. As expected price is now challenging the cloud support. Our previous analysis talked about price being vulnerable to such a pull back and that is why yesterday we analysed the 4 hour chart, to identify key turning points. The cloud is important short-term support. The tenkan-sen (red line indicator) has also crossed below the kijun-sen (yellow line indicator) which is another sign of weakness. If bulls manage to hold above the cloud, then short-term support will remain bullish. A close below 1.1140 will change short-term trend to neutral.