FX.co ★ Ichimoku cloud indicator Daily analysis of EURUSD

EURUSD is again above 1.17 after reaching our 1.16 target area. We warned bears to be cautious as a bounce was imminent. Trend remains bearish as price is still below cloud resistance. This cloud resistance bulls need to break now in order to continue higher. Otherwise a rejection will be a bearish signal.

EURUSD is trading now above both the tenkan-sen and kijun-sen indicators. A weak bullish signal has been given as the tenkan-sen (red line indicator) has crossed above the kijun-sen (yellow line indicator). If price breaks above the cloud resistance at 1.1745-1.1785 then we will have confirmation of the bullish signal and more positive signs for the short-term trend. Traders need to be patient and see if bulls are strong enough to break above the Kumo (cloud) resistance. A rejection around 1.1740 will be a bearish sign. Support is at 1.1670. Bulls need to stay above this level.