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11.02.2021 07:02 PM
EURUSD bullish momentum weakens

EURUSD remains in a bullish up trend. However price is showing short-term reversal signs. Price is breaking below the tenkan-sen (red line indicator) and this usually leads to a move lower towards the kijun-sen (yellow line indicator). The pull back target is at 1.2060.

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Breaking out of the cloud was an important bullish sign in the 4 hour chart. However after a break out we usually see a back test. With price breaking below the tenkan-sen we expect the pull back to start today and continue lower towards the cloud support at 1.2060. Bulls do not want to see price break below the Kumo (cloud).

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On a daily basis EURUSD remains in neutral trend as price is still inside the Kumo. Price is still below the kijun-sen (yellow line indicator). Bulls need to be careful of a possible pull back towards support at 1.2060.
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