02.06.2023 06:46 PM
Ichimoku cloud indicator analysis on EURUSD for June 2nd, 2023.

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EURUSD is trading around 1.0714 after reaching as high as 1.0779 earlier today. Price entered the 4 hour Kumo (cloud) but got rejected after the announcement of the unemployment rate and Non Farm Payrolls in the USA. Technically price has exited the bearish channel it was in but today's pull back increases the danger that the break out was a fake one. That is why we use the Ichimoku cloud indicator to get another perspective on the recent bounce in price from 1.0635 to 1.0779. As we can see in the 4 hour chart, price remains below the 4 hour Kumo thus short-term trend remains bearish. Price is pulling back and is challenging the tenkan-sen (Red line indicator) and the kijun-sen (yellow line indicator) that provide support at 1.0720-1.0705. The Chikou span (black line indicator) is above the candlestick pattern with negative slope trying to break back below it. Bulls need to step in and support price and form a higher low. This could help bulls gather momentum for another leg higher. Bulls need to break above 1.0780 in order for short-term trend to change to bullish.

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