Despite reckless efforts of the bulls to restore the market, the AUD could not break up above the Kijun-sen on 4-hour graphs. The aussie has bounced off it and tested the lower limit of the Cloud again. However, the prices met another support here – the Tenkan-sen and the Senkou Span B. As a result yesterday trading was limited by the Tenkan-Kijun channel.
However, today the bears can take bring the rate down substantially if the last candlestick breaches the horizontal Tenkan and Senkou Span B down and closes below them.
In this case a decline to 0.9930 can be expected.
On 1-hour graphs, as expected, in the first half of the trading session the price tested the upper limit of the Ichimoku Cloud. However, it could not break it up, which resulte in a reverse of the market sentiment to the downside – the bears took the rate to the lower limit of the Cloud. Neither the Tenkan-sen nor the Kijun-sen could stop the sellers.
However, the prices stayed inside the Kumo – sideways movement continued.
At the same time, the Tenkan-sen and the Kijun-sen managed to form several crosses, but at the moment current short-term trend is a downside one because of the influence of a Dead cross (3). Besides, the Senkou Span A is directed down (1).
Probably in the next several hours the price will fixate below the Ichimoku Cloud, which is likely to result in further selling of the Australian currency.
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