H4
Yesterday the bears decided to postpone their attack on the Australian dollar market: the lower limit of the 4-hour Cloud has provided a strong support and as a result the price has rebounded up from it again. This served as a signal for short-term purchases and during US session the aussie reached the upper limit of the Kumo, thus returning to the 1.0130 level.
However, triple resistance of the Tenkan-sen, the Kijun-sen and the Senkou Span A prevented the market from establishing a bullish trend in the midterm. Besides, the Tenkan-sen and the Kijun-sen formed a Dead Cross by that moment.
Therefore, the market pushed off from them, started to decline sharply and broke down the horizontal Senkou Span И today in the morning.
H1
On 1-hour graphs the downtrend is still in advance, despite yesterday’s sharp growth during European session: the price tested the upper limit of the Cloud. However, the Senkou Span B did not let the bulls advance further and kept resisting till today morning.
Disappointed buyers desided to get rid of the Australian currency, which resulted in mass selling and breakdown of the Kumo’s lower limit.
The Tenkan-sen and the Kijun-sen immediately changed their direction and started to decline, having formed a Dead Cross (5). The Senkou Span A and B were taken over by the downtrend (1, 2), thus confirming the market’s intention to ascend further.