EURUSD is bouncing off the 1.1075 area as expected by our previous analysis. Why did we expect price to bounce? Because we saw that in this area there is important support indicated by the Ichimoku cloud.
EURUSD is bouncing off the blue Kumo (cloud). Price has broken above the Daily cloud, back tested it and is now breaking above both the tenkan- and kijun-sen indicators. At the same time the Chikou span is above price and with plenty of room to move higher. In Ichimoku cloud terms EURUSD is in a bullish Daily trend as long as price is above 1.1070 area. Trend is bullish and with potential to move towards 1.13 over the coming weeks. Short-term resistance is at recent highs of 1.1180. Breaking above this level will be important for bulls.
