Short-term Ichimoku cloud indicator analysis of EURUSD for May 12, 2020.

By | May 12, 2020
InstaForex
Short-term Ichimoku cloud indicator analysis of EURUSD for May 12, 2020.

Relevance up to 12:00 2020-05-13 UTC–5

EURUSD price bounced strongly today towards important cloud resistance and got rejected. Although we talked about the possibilities of a bounce in previous posts, we also noted the importance of resistance in the area of 1.0870.

analytics5ebada5904af8.jpg

Price is approaching the 4 hour Kumo for the second time. So far we see another rejection as the first time. Price is still below the Kumo. All these signs are bearish. Unless price breaks above 1.09, EURUSD is vulnerable to another move towards 1.08 and lower. Support is key at 1.0784. Breaking below this support will open the way for a move towards 1.07-1.06. In our last analysis we mentioned a Fibonacci retracement target. The target of 1.0920 could not be reached. The 4 hour candlestick tried to break the 38% Fibonacci retracement but sharply reversed back below it.

analytics5ebadb19edb7f.jpg

Red rectangle – resistance

Green rectangle – target if red rectangle is broken

The previous 4 hour candlestick is a shooting star bearish candlestick pattern. This view is confirmed by the bearish cloud rejection. Inability to break above the 38% Fibonacci retracement is a sign of weakness.

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.

Performed by Alexandros Yfantis,
Analytical expert
InstaForex Group © 2007-2020

Benefit from analysts’ recommendations right now

Top up trading account

Get a bonus from InstaForex

InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.

InstaForex