EURUSD is trading around 0.9723. Despite the new lower low yesterday, EURUSD reversed to the upside strongly and pushing above the recent high of 0.9775. That price action implied that the downward break was a fake one. However the Ichimoku cloud indicator continues to show that EURUSD remains vulnerable to more downside. Price only bounced towards the cloud resistance and is showing rejection signs today. Price is pulling back and testing the tenkan-sen (red line indicator) and the kijun-sen (yellow line indicator). EURUSD is testing this important support at 0.9720. A 4 hour close below 0.9720 would a sign of weakness. If bulls manage to hold above 0.9720, then a move towards 0.98-0.99 could follow. A break above 0.98 would be a sign of strength and could lead EURUSD to more upside.
