EUR/USD: Ichimoku analysis (Nov. 22)
Daily. Last week the pair was recovering above the Ichimoku Cloud and tested a horizontal line Kijun-sen (KS), which provided resistance at $1.3560. The bulls were unable to take this height. As a result EUR/USD once again fell inside the Cloud, down to its lower border. For now euro’s supported by the Tenkan-sen. If the prices don’t hold on the key level of $1.3460, in the near future we can expect stronger bearish pressure. The Cloud has turned bearish: Senkou Span A went below Senkou Span B.
H4. On the H4 chart, EUR/USD tested the upper limit of the Ichimoku cloud, which coincided with the daily Kijun-sen line. Obviously, such a double obstacle is difficult to pass. Euro started correcting down from here which later led to the collapse of the currency pair to the bottom of the Cloud. Senkou Span A still keeps the market from falling, but the Tenkan and Kijun formed the Dead Cross (C), which can lead to further sales of the single currency.