EUR/USD : Kumo Support

EURO has retraced a fair bit from the highs of around 1.42 and it is now sitting right at the edge of the kumo support at 1.34

On the Daily Ichimoku Chart, We have 2 confirmations for a bearish trade and the kumo support at this level is crucial :

1. A Tenkan sen – Kijun sen bearish cross has been sighted

2. Leading kumo has twisted suggesting that a change in trend.

However, it is important to note that there is a thick kumo on the Ichimoku Weekly Chart and it will provide support for the EURO at this level.

From the Daily Chart, we can  also see that the Kijun sen (trend line) is flattening. As the price level has move away from Tenkan sen, there should be a little bounce here with the price moving back towards the Tenkan sen and Kijun sen. (Moving back into equilibrium)

EUR/USD Ichimoku Weekly Chart

By iam802

Trend trading with Ichimoku