The EURUSD has completed another day with a bullish candle making that bullish for the past 4 days. The overall sentiment on the daily is bullish with price being above the Kumo. Again I would be cautious about any long positions based off the fact that the Tenkan is below the Kijun which is bearish and also the Kumo future is bearish. Currently we are right up against the resistance level at 1.4500
Finally you see the symmetrical triangle that I have drawn. Price is right at the upper trend line and could retrace at this level if it continues to follow suit. Breaking the 1.4500 level and the upper trend line would strengthen the long positions. You see the resistance levels marked on the chart at 1.4500, 1.4600 1.4682 and the resistance zone between 1.4830 & 1.4942. Those are levels of decision making where the market must decide to bounce off or break and also levels to enter or take profit.
On the 4 hour time frame chart below we have all bullish signs from the Ichimoku system. Currently price is bouncing around the resistance level at 1.4500. If price can stay above this level then look for the pair to move to 1.4600 and 1.4682 and longer term 1.4830.
If price breaks below 1.4500 then look for retracement levels of 23.6% at 1.4433 and also in alignment with the Tenkan, 38.2% at 1.4370 and finally 50% at 1.4318 which aligns with the Kijun. If price falls below these levels we could see more downside. Currently the 4 hour Kumo future is thickening which shows more volatility and a sign of consolidation or retracement on the horizon. Happy trading traders!