FX.co ★ Ichimoku cloud indicator analysis on EURUSD for August 21st, 2023.

EURUSD is trading around 1.0905. EURUSD is bouncing higher as expected by our previous posts. Although trend remains bearish as price is still below the Kumo (cloud), we noted that a short-term bounce is justified from the recent low of 1.0845. EURUSD is challenging the kijun-sen (yellow line indicator) that provides short-term resistance at 1.09. A 4 hour candlestick close above 1.09 will open the way for a move towards the lower cloud boundary at 1.0944. The Chikou span (black line indicator) remains below the candlestick pattern (bearish), but is now challenging the resistance at 1.0905. Support is found at 1.0879 by the tenkan-sen (red line indicator). Bulls do not want to see price break below this level. As long as price holds above 1.0879, bulls have hopes for a bounce higher towards 1.0950.