EURUSD is trading around 1.0238 right on top of the Ichimoku cloud as expected. Last week we warned bulls that price was vulnerable to pull back towards the Kumo (cloud). Price had broken below the tenkan-sen and kijun-sen indicators showing vulnerability. Price is now trading on top of the cloud which is very important short-term support. A break inside the Kumo would be a sign of weakness. Next support is at the lower cloud boundary at 1.0105. The tenkan-sen (red line indicator) is resistance at 1.0311 and the kijun-sen (yellow line indicator) resistance at 1.0353. Bulls need to break above the resistance of 1.0353 in order to resume the up trend.
