In the Euro Dollar, we have an upward movement that started in March of last year (2020), the upward trend was confirmed, after the price will bounce off the thin cloud that served as support. It should not be a secret for anyone to understand that the Ichimoku shows 3 levels of support / resistance that must be broken before being able to indicate that there has been a change in the trend, and that is perhaps what displeases this indicator the most, since it is loses much of the start of the trend. What are those 3 support / resistance levels?
1- The Tenkan Sen, weak support / resistance level.
2- The Kijun Sen, medium support / resistance level.
3- The cloud, strong support / resistance level.
A trend undergoes several tests before changing, a minimum of 2 times, in others much more. That is why we are currently at an important moment for this pair, since depending on the behavior of the price in the cloud, a third upward push may come that could lead the pair to try to break the previous maximum that was 1.2555 or simply occur a change in trend from bullish to bearish.
From the Ichimoku point of view, the next week should be bearish for this pair, as the Chikou Span (CS) has just cut down on the price with a strong bearish candle, so we are in a strongly bearish moment in the Short term, in the medium term, it is possible that the downward movement will be confirmed if the Tenkan Sen (TS) cuts down the Kijun Sen (KS), it is currently higher. For its part, in the long term, a range is being indicated, this because the movement was bullish and right now it is in a correction that could end in a consolidation or change of the movement.
1- The Tenkan Sen, weak support / resistance level.
2- The Kijun Sen, medium support / resistance level.
3- The cloud, strong support / resistance level.
A trend undergoes several tests before changing, a minimum of 2 times, in others much more. That is why we are currently at an important moment for this pair, since depending on the behavior of the price in the cloud, a third upward push may come that could lead the pair to try to break the previous maximum that was 1.2555 or simply occur a change in trend from bullish to bearish.
From the Ichimoku point of view, the next week should be bearish for this pair, as the Chikou Span (CS) has just cut down on the price with a strong bearish candle, so we are in a strongly bearish moment in the Short term, in the medium term, it is possible that the downward movement will be confirmed if the Tenkan Sen (TS) cuts down the Kijun Sen (KS), it is currently higher. For its part, in the long term, a range is being indicated, this because the movement was bullish and right now it is in a correction that could end in a consolidation or change of the movement.
