EUR/USD: Ichimoku analysis (Jan. 24)
Daily. At the beginning of last week the pair traded below the Ichimoku Cloud leaning towards the $1.3500 figure. But here the bulls felt support and brought the pair back to the positive area breaking up resistance of the cloud. However, bulls stopped at Kijun-sen which formed a barrier right at $1.3700. In the near term we expect euro to recoil down. The prices have to fix above the Kijun line for euro to resume growth.
Chart. Daily EUR/USD
H4. At H4 the pair consolidated round the short-term lines, but on Thursday risk appetite increased. As a result, the pair reached the upper limit of the Ichimoku Cloud, which formed strong resistance at $1.3700. Obviously, the bulls won’t be able to pass this level from the first attempt. There may be a decline to Tenkan and Kijun which formed a golden cross.
Chart. H4 EUR/USD
Tatyana Norkina, FBS analyst