EUR/USD: Ichimoku analysis (May 23)
By Tatyana Norkina, FBS
Daily. Bearish sentiment intensified during the past week. The currency pair fixed the Ichimoku Cloud after a brief consolidation, and in the second half of the week the bears got the signal to resume sales. In fact, the Ichimoku indicator fully supported them: Tenkan-sen and Kijun-sen formed a Dead Cross, Chinkou Span crossed the price chart down and the Cloud became descending. Further target may lie at $1.3600.
Chart. Daily EUR/USD
H4. At H4 the pair pushed up from the bottom of the Cloud, but Senkou Span A in this case acted as resistance line which is actually weaker than Senkou Span B. The fact that the bulls were unable to overcome its level shows their weakness. Therefore, in the near future we can expect a breakdown of support at $1.3650. The Ichimoku indicator is completely on the side of the bears – the Dead Cross is I place and the Cloud has a descending character.
Chart. H4 EUR/USD