EUR/USD: Ichimoku analysis
Daily. Last week EUR/USD was consolidating within the Tenkan-Kijun channel on the daily chart. Resistance possible was provided by the upper limit of the channel – Tenkan-sen (TS). Note that on the candlestick chart there was a reversal pattern formed, which later received confirmation. As a result, the pair slipped back to the recent local minimum at $1.3500. It’s clear that the market now requires correction so that the main trend could continue later on. In the short term we expect a decline to Kijun-sen (KS), which started forming support at $1.3440.
Chart. Daily EUR/USD
H4. The sideways trend, we talked about a week earlier, made EUR/USD to go down deep into the Ichimoku cloud on H4. During the week the pair tested several times the upper levels of the cloud, but it’s obvious that the buyers at the moment are in a weakened condition. The location of Chinkou Spen also confirms the weakness of bulls. It should be noted that in the recent days the pair has already fixed under the Tenkan and Kijun lines which now have the same value (C) and horizontal. This is the further evidence of the fact that in the short term currency pair may fall to the bottom of the cloud. Senkou Span B formed a support at $1.3440.
Chart. H4 EUR/USD
Tatyana Norkina for FX BAZOOKA