We use the Ichimoku cloud indicator to identify key support and resistance levels for EURUSD in the 4 hour chart. Price has most probably completed the upward move from 1.16 and EURUSD is now making a corrective pull back.
EURUSD is again above the Ichimoku cloud(Kumo) but price has pulled back strongly below the tenkan-sen (red line indicator). The tenkan-sen at 1.1850 is resistance. Support is found at the kijun-sen (yellow line indicator) at 1.1770 and finally at the 4 hour Kumo at 1.1733. As long as price is below the tenkan-sen, then it is highly likely price will challenge the Kumo at 1.1733. The Kumo is important support and the best price range to test bulls and or to open new bullish positions. As long as price is above 1.16 we consider this pull back as a try to form a higher low before continuing the up trend. If price breaks below the Kumo (cloud) then bears will be in control and chances for a break below 1.16 increase.