02.03.202010:13 Forex Analysis & Reviews: Ichimoku cloud indicator analysis of EURUSD

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In a previous analysis posted on February 25th we noted that we were given initial reversal signals in EURUSD by the Ihcimoku cloud indicator. Our first target of 1.0945 was reached and we now approach our second target of 1.11.

In that analysis we noted how EURUSD price was crossing the tenkan-sen to the upside and that would push price towards the Kijun-sen (yellow line indicator). A break above the kijun-sen would push price towards cloud resistance (Kumo). Price did exactly this and is approaching the cloud resistance at 1.11.

Red lines -bearish channel

EURUSD is approaching the upper channel boundary. The Ichimoku cloud indicator also confirms that this area just ahead is important resistance area. The sentiment at the start of this week is strong, where the traders left it last week. With a weekly bullish hammer two weeks ago and a strong week that followed, will we see another strong week and a break above weekly resistance? A rejection at 1.1130-1.11 would be a bearish sign. This is not the time to buy as price is very close to important resistance.

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