EURUSD is breaking above important short-term cloud resistance levels providing the first short-term reversal signal after October. Price is starting to form higher highs and higher lows as expected after our technical analysis bullish signal.
In the 4 hour chart, price is breaking out of the cloud. This is a bullish sign. Price initially got rejected at the cloud resistance but as we mentioned yesterday, the technical view on EURUSD after the break above the wedge pattern remains an important bullish signal. Price soon after our analysis entered the cloud and is now breaking above it.
In the Daily chart, price is above the tenkan-sen (red line indicator) for the third day in a row. Price is now moving higher towards the kijun-sen (yellow line indicator). Support is by the tenkan-sen at 1.1280. Resistance and short-term target is at 1.1440.
