FX.co ★ Ichimoku cloud indicator analysis on EURUSD for August 31st, 2023.

EURUSD reached very close to the lower cloud boundary as expected, but is now getting rejected. In our previous analysis we warned traders that EURUSD despite the strong bounce, is approaching important cloud resistance and the chances of a rejection are high. Today price is getting rejected and the daily candlestick is moving below yesterday's range and below the tenkan-sen (red line indicator). The kijun-sen (yellow line indicator) remains above the candlestick pattern providing resistance at 1.0955. The Chikou span (black line indicator) remains below the candlestick pattern (bearish). Recent price action confirms the importance of the resistance around 1.0955 and that bulls need to recapture this level in order to hope for a trend change.