EURUSD bulls tried to break above the short-term Ichimoku cloud resistance but they are unable to do it. The short-term trend might have turned neutral when price entered the 4 hour cloud, but there is no sign of strength. On the contrary the warnings we get favor bears.
EURUSD is inside the 4hour Kumo. This implies trend is neutral. We had a weak bullish signal when the tenkan-sen (yellow line indicator) crossed the kijun-sen (green line indicator), but this happened below the cloud. That is why it was a weak signal. Price action confirmed that it was a weak signal as price could not break above the Kumo (cloud). Bulls need to break above the cloud otherwise this rejection if combined with a price below the 4 hour Kumo, then we can say that bears resume control of the trend and EURUSD should start another move lower towards 1.07. Resistance remains key at 1.0960 area. Support now is at 1.0860. I prefer to be bearish near 1.0960 and add to bearishness if we break below 1.0860. On the other hand I would turn bullish if price breaks above the Kumo and stays above it.
