EUR/USD: Ichimoku analysis (Dec. 6)
Daily. Last week EUR/USD consolidated within the Ichimoku Cloud supported by the Tenkan-sen and Kijun-sen. At the end of the week the bulls became more active and took advantage of the Golden Cross (C). This led to the breakdown of the upper limit of the sideways corridor at $1.3600 and a consequent move up to $1.3680, the resistance formed the Ichimoku Cloud’s top. At the beginning of the next week the prices may remain within the Cloud. There are a couple of reasons for that. Firstly, we see a strong resistance at the current levels. Secondly, Kijun (KS) suddenly went down. Thirdly, the Ichimoku Cloud still has a bearish tone.
Chart. Daily EUR/USD
H4. At the H4 chart the pair spent the week above the Ichimoku Cloud. The upper border of the Cloud several times held the bears’ attacks and made euro bounce upwards. As a result, EUR/USD renewed local highs and the uptrend strengthened. Ichimoku indicator still looks quite optimistic. The Golden Cross remains in place (C). If the bulls maintain such growth pace, the pair may reach $1.3785 in the coming week.
Chart. H4 EUR/USD
Tatyana Norkina, FBS analyst