FX.co ★ Ichimoku cloud indicator analysis on EURUSD.

EURUSD ended last week on a bearish note as price had broken below the cloud in the 4 hour chart providing a short-term bearish signal. EURUSD is still above 1.13 but price is vulnerable to more downside.

Price initially respected the cloud support and bounced off the lower cloud boundary. However price was unable to break above the cloud again and on Friday we saw price fail to stay inside the cloud. In Ichimoku cloud terms, 4 hour trend is bearish as long as price is below 1.1380. Bulls need to recapture 1.1380 otherwise we should expect price to move below 1.1280.