FX.co ★ Ichimoku cloud indicator analysis on EUR/USD for June 26, 2018

The EUR/USD pair has broken above 1.17 and has reached the 61.8% Fibonacci retracement as expected at 1.1720. Price got rejected and is now back testing the breakout above the Kumo (Ichimoku cloud) resistance that is now support.

As can be seen above, EUR/USD has broken above the 4-hour Ichimoku cloud (Kumo). This is a bullish sign if price manages to hold above it. Price got rejected at the important resistance Fibonacci level of 61.8% and for the short-term to remain bullish we will need a break above 1.1720 on a weekly close. Support is at 1.1689 and at 1.1640. A break below 1.1640 will open the way for a move towards 1.1580. This support at 1.1580 must hold, otherwise a new low towards 1.1450 should be expected.