FX.co ★ Short-term Ichimoku cloud indicator analysis of EURUSD

EURUSD has reached our short-term bounce target of 1.09 after breaking above 1.0810 but price shows rejection signs at the 4 hour Kumo. This is a bearish sign. Bulls need to recapture 1.09 in order to hope for some short-term trend reversal.

EURUSD price is getting rejected at the Kumo. Price is also breaking down below both the tenkan-sen and the kijun-sen. The tenkan-sen and the kijun-sen are also hitting each other, so currently we have no clear signal from those two. Having price and the Chikou span (black line indicator) below the Kumo is still a bearish sign. Trend remains bearish despite the short-term bounce. Support is now at 1.0770. If broken we expect 1.07 to be tested. Resistance at 1.09-1.0925 remains important for short-term trend. If broken upward we could see bounce to 1.1030-1.11. Until then bears remain in control.