FX.co ★ Bullish signal by the Ichimoku cloud indicator in EURUSD.

In previous analysis on EURUSD using the Ichimoku cloud indicator, we noted that bulls needed to push price at least above the 4 hour Kumo (cloud) in order for the short-term trend to change to bullish. After the FOMC volatility spiked and prices have broken above the Ichimoku cloud.

EURUSD is above the cloud and the kijun-sen (yellow line indicator) and the tenkan-sen (red line indicator). Bulls need to see price stay above the cloud. Support by the cloud is at 1.1305. A new bullish signal will come if and when the tenkan-sen crosses above the kijun-sen. If this is combined with a continuation of this upward move, we will consider the recent lows as a major low.