Ichimoku cloud analysis for EURUSD

EURUSD remains trapped inside the short-term trading range between 1.1250 and 1.1165 while at the same time price is challenging 4 hour cloud support. There are many chances of bouncing from current levels but if price breaks above 1.1230 again, then we should expect more upside for this pair.


Magenta lines – trading range

EURUSD is challenging support at 1.1165-1.1170. Price is at the edge of the upper Kumo (cloud) boundary. This is important support. Breaking inside the cloud will turn short-term trend neutral in cloud terms. Breaking below 1.1138 will turn it bearish. Resistance is found at 1.12 and at 1.1230. Breaking above these levels will push price towards 1.13. The current price form of the recent sideways move implies that we are in a corrective phase. The upward move from 1.1026 to 1.1249 looks impulsive. This tells me that at least one more leg higher should be expected.

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