EURUSD remains in a bearish trend according to the Ichimoku cloud indicator. So far there is no sign of a reversal. As we mentioned in previous posts, EURUSD although in a bearish trend, the downside potential is limited. We use the Ichimoku cloud indicator to identify key resistance levels that will give us a heads up of the reversal.
The tenkan-sen (red line indicator) is found at 1.08. A 4 hour candlestick close above this level will be the first sign of a possible reversal. Confirmation will come once price closes above the kijun-sen (yellow line indicator). This resistance is now found at 1.0841. Major resistance is shown by the Kumo (cloud). As long as price is below 1.0870-1.0930 price will be vulnerable to move to lower levels.
