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EUR/USD : Ichimoku reading. Kumo resistance

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.

One reply on “EUR/USD : Ichimoku reading. Kumo resistance”

I have the exact same set-up identified this evening. In fact today’s candle is looking like a clean doji just beneath the Chikou resistance you identified which is enough for me to enter short. Also on the higher time frame (weekly) price is also very close to both a flattened Tenken which has confluence with the Chikou flirting with the bottom edge of the Kumo looking back. On the weekly chart the recent rally looks very clearly a retracement in the longer term bearish pattern. Lets hope it works out! I love Ichimoku

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