FX.co ★ EURUSD bounces off cloud support at 1.2050

With a low at 1.2058, EURUSD touched the upper cloud boundary in the 4 hour chart yesterday and today price is bouncing strongly above 1.21. With a high at 1.2158, EURUSD bulls must defend 1.21-1.2090 short-term support.

Price is above the Kumo. This is bullish. Price is above the tenkan-sen and the kijun-sen. This is also bullish. Bulls need to see price close above 1.2118 today. Recapturing 1.21 would be the first step towards the start of the next upward move to 1.22-1.23. If support at 1.2090 fails to hold, we expect price to move towards the lower cloud boundary at 1.20. Important short-term resistance is found at 1.2130