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 Â 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