EURUSD remains in a bearish trend as price in the 4 hour chart remains below the Ichimoku cloud resistance. However today's price action is showing potential bounce signs as price is challenging the short-term resistance of the tenkan-sen and kijun-sen indicators.
EURUSD is trading above the tenkan-sen (red line indicator). A 4 hour candlestick close above this indicator will be a sign of strength. However the most important short-term test is the kijun-sen (yellow line indicator) resistance at 1.1745. A 4 hour candlestick close above this level will most probably push price towards the Kumo (cloud) for the big test. Cloud resistance is between 1.1780-1.18. So if price breaks above the kijun-sen, then we expect the cloud resistance to be tested. If price fails to hold above 1.1730-1.1715, then we should expect new lows for EURUSD.
