FX.co ★ Ichimoku cloud indicator analysis on EURUSD.

EURUSD yesterday gave us the first sign of strength by closing the 4 hour candlestick above the tenkan-sen. In previous posts we noted that a bounce higher was justified. Price reached the first important resistance level at 1.0870.

Trend remains bearish as price is still below the 4 hour Kumo (cloud). Price has broken above the tenkan-sen (red line indicator) and the kijun-sen (yellow line indicator). Price has reached as expected the lower cloud boundary which is key short-term resistance. The Chikou span (blue line indicator) is below the candlestick pattern challenging resistance. Current market conditions confirm that we are at a very important short-term junction. The 1.0870 level is important resistance. Bulls need to overcome this in order to continue higher.