Ichimoku cloud indicator analysis on EURUSD for April 27th 2024.
In Ichimoku cloud terms in the 4 hour chart EURUSD is in a neutral trend as price is trading inside the 4 hour Kumo (cloud). Price got rejected at the upper cloud boundary and is turning lower. As long as price is inside the Kumo and does not break down below it, bulls have hopes for the formation of a higher low and a higher high. Friday’s high was at the key short-term resistance of 1.0750 (mentioned also in our previous analysis as the first important resistance). I remain long as price continues to respect the 1.0675 area although I believe I will have to adjust my stop a bit lower to combine the technical support by the blue upward sloping support trend line and the lower cloud boundary at 1.0650. For a short-term trend change to bullish, EURUSD needs to break above 1.0753 high.
On a daily basis EURUSD is in a bearish trend as price is well below the Kumo (cloud). Price is trading between the tenkan-sen (yellow line indicator) and the kijun-sen (red line indicator). Price has resistance the red line indicator that tested on Friday and got rejected. The Chikou span (black line indicator) remains below the candlestick pattern (bearish). If EURUSD breaks above 1.0753 our next target will be at 1.0810-1.0840 where we find the cloud resistance.
A break below 1.0650 will be a sign of weakness and could lead EURUSD to a new low below 1.06.