FX.co ★ Short-term Ichimoku cloud indicator analysis of EURUSD for July 7, 2020

EURUSD remains in a bullish trend according to the Ichimoku cloud indicator as price is above the Daily Kumo (cloud). In our previous analysis we noted the importance of the 1.1285-1.13 area. This was once resistance and is now support.

EURUSD continues to trade above the kijun-sen (yellow line indicator) confirming short-term momentum is bullish. EURUSD made an important break out yesterday and today price pulled back to back test this area. EURUSD pulled back towards the junction of the tenkan-sen (red line indicator) and the kijun-sen (yellow line indicator). This is important support. Respecting this support is a bullish signal. The Ichimoku indicator agrees with yesterday's analysis for the importance of the 1.1265-1.1285 area. Holding above it is key for the up trend towards 1.14. Failure to stay above it will make us believe yesterday's break out was a fake one.