Trading Ichimoku

From the above Ichimoku Daily Chart, we can see that EUR/USD fails to breakout of the thick kumo resistance.

This reflected the issues that the Eurozone is facing.

However, we might want to take note that the leading kumo is showing possible signs that the trend may turn.

Do note the support from the Tenkan sen at around 1.305

We can see how it corresponds to the support in the 15min chart from the Chikou Span

My short term bias is bearish on the Euro and believes that the level will be breached.

Vested with short position.

EUR has rally against the USD to the point that the Tenkan sen may cut Kijun sen to give a bullish confirmation.

However, at this point, there is still no bullish confirmation signal from the Ichimoku chart.

In fact, we have 3 signs that EUR/USD is poised to drop.

1. Chikou Span resistnace at around 1.305

2. The EUR/USD having rally from the bottom of 1.26 is about to hit the resistance level set by the Chikou Span. We can see how EUR holds at that level before its ultimate drop to 1.26 .

Given the weak economic conditions in Europe itself, the chance of EUR strengthening is very low.

3. Kumo resistance ahead. We can see that a thick kumo is waiting ahead to provide the huge resistance. On top of that, the kumo is still bearish and there is no indication from the leading kumo that the bearish trend has change.

I think this is a fairly good setup and will be looking to establish a bearish position.

EUR/USD Ichimoku chart is showing that it is ready to pierce through 1.4 anytime soon.

Currently, it is just trading beneath the kumo resistance.