In the 4 hour chart of EURUSD we see price breaking out of the Kumo (cloud). This is a bullish sign. Price initially tested the cloud and got rejected yesterday. However price formed a higher low and as we explained in our technical analysis, this bullish setup provided hopes for a move higher.
The tenkan-sen (red line indicator) is above the kijun-sen (yellow line indicator). Both are starting to move higher. The Chikou span (black line indicator) is also breaking out and above the cloud resistance. Bulls now need to defend the cloud and not let price fall back inside or below the Kumo. Support is at 1.0498. As long as price is above the cloud, trend is bullish in the 4 hour chart according to the Ichimoku cloud indicator.
