EUR/USD: Ichimoku analysis (Nov. 29)
Daily. This week buyers were more active than sellers. Euro broke above the Kijun-sen (KS) resistance line, which formed a strong level in the $1.3560 area. This level was capping the prices throughout November, so the pair’s settling above it can encourage market participants to make new purchases. In the meantime, euro’s trading inside the Ichimoku cloud, right under its upper boundary. At the same time, we should pay attention to the bearish character of the indicator. Cloud still remains bearish and Tenkan and Kijun are in no hurry to cancel the Dead Cross (C). So, don’t expect a quick exit from the Cloud. The closest level which can stop the bulls lies at $1.3650.
Chart. Daily EUR/USD
H4. At this timeframe the pair went to the bullish territory through the resistance provided by the upper limit of the Ichimoku cloud. Positive attitude of the market players relied on the Golden Cross formed at the beginning of the week by Tenkan and Kijun. Then the nature of the underlying trend changed – the lines Senkou Span A and Senkou Span B crossed and the pair successfully settled above the Cloud’s top. Thus, the bulls keep advancing, but there’s strong resistance in the $1.3640/3650 range and this resistance can stop the growth of the currency pair.
Chart. H4 EUR/USD
Tatyana Norkina, FBS analyst