EURUSD volatility has increased today specially after the US CPI announcement one hour ago. Price initially fell towards 1.2150 but then a strong bounce towards 1.2195 followed. Price is now again under pressure and a rejection at cloud resistance followed by a new lower low below 1.2140 would be an added bearish signal.
EURUSD is showing rejection signs in the 4 hour chart. Price is testing the 4 hour Kumo (cloud) resistance and so far seems unable to break above it. Breaking above the cloud resistance (1.2190-1.22) is key for the short-term trend. Inability to do so will push price lower towards 1.21-1.2050. The kijun-sen (yellow line indicator) is at 1.2160. A 4 hour close below this level will be a sign of weakness.
