EURUSD broke out of the cloud resistance yesterday and rose up to 1.1355. Price is now pulling back and challenging cloud support at 1.1310. Ideally for bulls price will bounce and continue higher above 1.1355 in order to reach our short-term target of 1.1440.
Price is still above the cloud or at least at the edge of the upper boundary. At 1.1310-1.13 we find the cloud support but also both the tenkan-sen and kijun-sen indicators. The tenkan-sen is sloping upwards while the kijun-sen is flat. It is important for bulls to stay above the cloud and produce a bounce. This will increase the chances of the continuation of the up trend. On the other hand bears want to see price break below the cloud again in order to regain control of the trend.
