FX.co ★ Ichimoku cloud analysis of EURUSD

EURUSD is bouncing strongly towards 1.21. In Ichimoku cloud terms trend is neutral as price remains inside the Daily cloud. Price held the support at the lower cloud boundary and bounced off of it. In order for trend to change to bullish again, price must break above the Kumo (cloud).

EURUSD is trading inside the Kumo. Price has moved today above the tenkan-sen (Red line indicator). The tenkan-sen is now support at 1.2050. Breaking below this support will increase chances of breaking below the cloud thus pushing even lower. Next resistance by the upper cloud boundary and the kijun-sen (yellow line indicator) is at 1.2150-1.2160. Bulls need to recapture this price level in order to regain control of the trend. A break below 1.2050 will make me turn short-term bearish.