FX.co ★ Ichimoku cloud indicator Daily analysis of EURUSD for January 7, 2020

EURUSD remains in a bullish trend continuing to make higher highs and higher lows. Price so far has respected the key Cloud support area of 1.1040-1.1050. Thus we continue to see more upside potential over the coming days.

Price has broken above the Kumo (cloud) and has so far successfully back tested support. Price bounced off the Cloud and this was another bullish signal. EURUSD is now trading above the tenkan-sen (red line indicator) while the kijun-sen is trending below tenkan-sen with a positive slope. With the tenkan-sen above the kijun-sen we have supporting evidence of a bullish trend. We continue to expect this next leg higher to move closer to 1.1280.