FX.co ★ Ichimoku cloud indicator provides short-term sell signal in EURUSD

EURUSD bulls are under pressure today. Price has broken below short-term support at 1.0965 and is testing important cloud support and yesterday lows. EURUSD is vulnerable to a move lower. As we explained in our last analysis, bulls need to hold above the cloud. Price is entering the cloud now and the tenkan-sen (red line indicator) is crossing below the kijun-sen (green line indicator) providing us with an added weak sell signal.

If we see a 4 hour candlestick close inside the Kumo then we have another bearish signal. Price has already made an intraday lower low relative to yesterday despite the bounce to 1.1040. Price has formed a lower high and is moving for lower lows. If this is combined with a Kumo (cloud) break down then more selling pressure will be expected to prevail. Price would move to 1.06-1.07.