The daily Ichimoku chart for $EUR/USD is suggesting that the uptrend for EUR/USD is coming to an end.
1. We can see that the overall trend is flattening or hitting a plateau with the kumo turning flat.
2. A bearish cross seems to be forming between the Kijun sen and Tenkan sen
3. Support is thin at the kumo
4. Leading kumo seems to suggest a change in trend may be coming.
EUR/USD has rebounded off the kumo support at around 1.305
Right now it is trading right at the resistance level as shown by the kumo around 1.3187
I think this is a fairly good setup for a short for the following reason:
1. We have a bearish cross from the Tenkan sen and Kijun some time back.
2. It is trading right at the kumo resistance level
3. The leading kumo has twist and suggest that the trend forward is down.
Target time frame to break kumo support is around 2 weeks (by May 10)
We can see from the Ichimoku chart for EUR/USD that EUR failed to breakout of the kumo successfully.
Having rebounded off the kumo support at around 1.305, I am betting that it will drop from 1.318 and pierce through the kumo support below.