In previous analysis on EURUSD using the Ichimoku cloud indicator, we noted that bulls needed to push price at least above the 4 hour Kumo (cloud) in order for the short-term trend to change to bullish. After the FOMC volatility spiked and prices have broken above the Ichimoku cloud.
EURUSD is above the cloud and the kijun-sen (yellow line indicator) and the tenkan-sen (red line indicator). Bulls need to see price stay above the cloud. Support by the cloud is at 1.1305. A new bullish signal will come if and when the tenkan-sen crosses above the kijun-sen. If this is combined with a continuation of this upward move, we will consider the recent lows as a major low.
