EUR/USD: Ichimoku analysis (Jan. 31)
Daily. The pair failed to break the resistance of the horizontal line Kijun-sen (KS) at $1.3700. Therefore bulls were forced to capitulate and the bears once again joined the game. During the week the market was sliding to the lower border of the Ichimoku Cloud. Senkou Span B can’t stop the bears’ attack. The pair’s already trading in the negative zone. All lines of the Indicator are directed sideways which points at longer term flat. Moreover, the Cloud is rising, though the Dead Cross (C) is in place.
Chart. Daily EUR/USD
H4. At the beginning of the week the pair has once again tested the upper limit of the Ichimoku Cloud. Senkou Span B turned out to be a pretty strong resistance. After a moderate decline inside the Cloud, the pair fell on Thursday, breaking to the negative zone. Moreover, although the short-term lines formed Dead Cross and quite clearly indicate the superiority of the bears, the Senkou Span A and Senkou Span B behave in a quite unusual manner: they decrease, but support the bullish Cloud. The pair fell to a fairly strong support at $1.3550. A rebound up is possible.
Chart. H4 EUR/USD
Tatyana Norkina, FBS analyst