The consolidation on the AUD market has continued. While on Monday the prices were moving in a quite narrow sideways corridor, on Tuesday the volatility grew.
As expected, the bulls tried to return the market to recent highs, but there was not enough positive dynamics. As a result, the aussie turned out to be located below the Model line (4), having broken the Rotation line (3).
Despite this, the upside Cloud has advanced a little bit (1,2), but at the moment both Leading lines are directed horizontally. It implies, the market has no definite intention to grow. Therefore, in the nearest time a decline to the upper limit of the Cloud should be expected.
On 1-hour graphs we can see the fight for new highs. In the yesterday’s trading session the bulls were trying to tear off the upper limit of the Cloud, but the 1.0190 turned out to be inaccessible, which caused today’s another entry to the Cloudiness zone.
Such behavior of the prices implies that the market is not ready to continue the uptrend, and we should probably expect a decline and exit out of the Cloud into the negative zone.
It is obvious that if the situation develops this way, the first support will be located at the 1.0090 level. However, afterwards a return to 1.0125 (the lower limit of the Ichimoku Cloud) might take place.
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