FX.co ★ Ichimoku cloud indicator analysis on EUR/USD for July 12, 2018

he EUR/USD pair has broken through our support levels we mentioned yesterday and reached our target of the 4-hour Ichimoku cloud support above 1.1650. Short-term trend is now challenged. A break inside the cloud will change trend to neutral from bullish. A great risk reward for bulls at current levels as EUR/USD is above important support.

Resistance is at 1.1710 and next at 1.1760. The second resistance is the same as yesterday and where price got rejected. Will the Kumo (cloud) provide the bounce today? Great risk reward for going long at current levels with a tight stop at 1.1650. If EUR/USD starts new upward move from current levels which is very likely, we will see a move towards 1.19-1.20. A break below support however will increase the chances of a move to new lows towards 1.12-1.13.