Fundamental analysis

Ichimoku cloud indicator analysis on EURUSD for November 4th.

invest on stocks


EURUSD is trading around 0.9820. Friday’s are excellent days where a counter trend move usually occurs as traders prefer to realize their profits from the week ending. A down week has given bears a lot of profits and it is normal to see a bounce on Friday as bears take profits. This is also common technically speaking. After a cloud break we usually see price back testing the cloud boundaries. In this case we saw two days ago price break below the cloud and is now bouncing as a back test. Resistance by the cloud lower boundary is at 0.9830. Next resistance is at the kijun-sen (yellow line indicator) at 0.9865. If bulls manage to break above the kijun-sen, then I will expect price to test the upper cloud boundary at 0.9952. As long as price is below the Kumo (cloud) we remain bearish.

The material has been provided by InstaForex Company –