EUR/USD: Ichimoku analysis (Mar. 7)
Tatiana Norkina, FBS analyst
Daily. EUR/USD prospects improved this week. Despite a pretty pessimistic beginning of the week, the pair remained in the positive zone, using Tenkan as a support. As a result, EUR rose to $1.3870 — new yearly high, very close to the 2013 top. Ichimoku cloud has become bigger, contributing to positive market sentiment towards the single currency.
Chart. Daily EUR/USD
H4. The pair rose above the H4 Cloud and used Senkou Span A as a support. Bears showed weakness as they failed to extend correction into the Cloud. As a result, bulls returned to the market, resuming an uptrend. Positive sentiment persists, but the Chinkou line will soon come into the overbought territory. Next week we concede a corrective decline to Tenkan-sen.
Chart. H4 EUR/USD