FX.co ★ EURUSD bounces off cloud support as expected

EURUSD is bouncing off the Ichimoku cloud in the Daily chart as expected by our latest analysis. EURUSD bulls are trying to recapture 1.11. Bulls need to show more signs of strength in order to continue the bounce higher.

EURUSD has reversed its short-term trend after reaching the 61.8% Fibonacci retracement. Since then price has moved higher to break once again above the Kumo. Now price has back tested the cloud. Price is bouncing off the cloud and this is a bullish sign. Bulls do not want price to fall back inside the Kumo. This would be a bearish sign. We continue to favor the bearish scenario as long as price is above the recent lows at 1.1066.