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EUR/USD: Ichimoku analysis

Daily. EUR/USD renewed this year’s highs. The new extreme value was recorded just yesterday, just below the $1.3800 handle. The appreciation of the currency pair began after bounced off the support at Kijun-sen (KS). The breakdown of resistance created by Tenkan-sen contributed to rise of bullish sentiment and further recovery. Thus, the bullish trend has retained its strength. This is confirmed by the Ichimoku indicator, all the lines of which are directed upward. Nearest medium strong resistance levels are at levels $1.3800 and $1.3900.

Chart. Daily EUR/USD

H4. The situation is positive at H4 as well. Once the market broke out of the cloud, the currency pair has recovered almost 250 points breaking all local resistance levels. The market has chosen the bullish direction which can be preserved in the future. However, the currency pair is overbought, as can be seen from Chinkou Span, and this may contain the bulls in the near term. We should also note that the short-term lines are configured for the sideways move. The pair may correct to Tenkan in the near term (TS).

Chart. H4 EUR/USD

Tatyana Norkina for FX BAZOOKA

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