FX.co ★ Ichimoku cloud indicator analysis on EURUSD for October 4, 2021.

EURUSD is making higher highs and higher lows in the near term. Price has made an important low at 1.1563 and is now showing its first signs of strength. Trend in Ichimoku cloud terms, remains bearish as price is still below the Kumo.

EURUSD has broken above the tenkan-sen (red line indicator). Support by the tenkan-sen is at 1.1606. Bulls must defend this level. Price is now challenging the kijun-sen (yellow line indicator) at 1.1631. Bulls need to make a 4 hour candlestick close above this level. If this happens, we should next expect EURUSD to push towards the Kumo (cloud) and test it from below. Currently the Kumo (cloud) is around 1.17 so a bounce towards that level is justified and not out of the question. However this doesn't mean that trend has changed. Traders need to continue to be cautious.