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EUR/USD: Ichimoku analysis (Dec. 27)

Daily. In the week ahead the New Year the US dollar is losing ground versus almost all major world currencies. EUR/USD recovered to 1.3740 by the end of the week. Bullish sentiment strengthened: prices have gone through resistance of the Tenkan-sen, and will soon be fixing above it. The Ichimoku Cloud also points to the strengthening of the bulls, but in the longer term.

Chart. Daily EUR/USD

H4. Here EUR/USD is leaving the Cloud. The pair’s supported by the short-term Golden Cross (C). The Cloud itself looks positive. It started widening up due to the growth of Tenkan-sen. The position of the bulls is strengthening. Note though that there’s a serious resistance at $1.3755. In addition Chinkou Span shows that the market is overbought. So, when the market reaches the level mentioned above, the market can either begin consolidation or make a corrective decline to the lower edge of the Cloud.

Chart. H4 EUR/USD

Tatyana Norkina, FBS analyst

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