EURUSD – Bulls maintain strong control above ascending daily Ichimoku cloud

EURUSD rallied on Wednesday, extending its post-NFP rebound after a brief two-day pause that followed Friday’s sharp surge.

The bullish momentum resumed, lifting the pair to a one-week high and nearing the 61.8% Fibonacci retracement of the 1.1788–1.1391 decline, as the dollar weakened amid increasing expectations of a more dovish Fed stance following signs of labor market softness in the U.S.

Investor sentiment toward the greenback also soured on uncertainty surrounding President Trump’s upcoming nomination for the next Federal Reserve Chair.

Technical signals improved, with the 14-day momentum turning positive and price action remaining firmly above the ascending daily Ichimoku cloud top (1.1581) and the nearby rising 55-day moving average (1.1568) — both providing reliable support for the fourth straight day.

For the bullish outlook to strengthen further, the pair needs a daily close above the broken resistance zone at 1.1626/1.1637 (20DMA / 61.8% Fibo), which would clear the path toward 1.1695/1.1700 (76.4% Fibo / psychological level).

However, an overbought Stochastic warns of potential headwinds, and maintaining position above the cloud will be key to preserving the current bullish bias.

Res: 1.1637; 1.1667; 1.1700; 1.1721
Sup: 1.1610; 1.1581; 1.1568; 1.1527