FX.co ★ EURUSD continues the bounce towards important resistance levels as noted two days ago.

EURUSD is trading above 1.1050 and has entered the previous support area now resistance. The short-term bounce was anticipated and justified as many indicators were at oversold levels and giving us bullish divergence signs.

Red rectangle- previous support now resistance

EURUSD as noted in our last analysis, has broken above the tenkan- and the kijun-sen indicators. This has lead to a move towards cloud resistance. Bulls want to see price break above the cloud and stay above the cloud. As long as price is below the Kumo (cloud) trend remains bearish. There is a cross between the tenkan- and kijun-sen. This is not a strong signal as price and the Chikou span are below the cloud. Therefore we still consider this move higher as a relief bounce. Key resistance ahead is at 1.11.