H4
As expected, bearish sentiment on the Australian dollar market is in advance and during yesterday the rate declined to the 0.9820 level.
However, in the beginning of the US session the price started to recover and almost reached th Rotation line (3).
It is worth mentioning that the Tenkan-sen and the Kijun-sen split and formed a Dead Cross (5).
The Ichimoku Cloud retains a downside character and indicates possible further decline.
H1
On 1-hour graphs the downtrend remains as well: the Ichimoku Cloud is diverging down further due to the declining Senkou Span A (1).
However, at the moment the Tenkan-sen and the Kijun-sen started to form the Gold Cross (3), which might have a positive influence on the market sentiment.
Therefore, if the Kijun-sen can provide a support for the price, it might advance during next few hours to 0.9960 – the resistance level formed by the horizontal Kijun.
Otherwise the downtrend will continue from current levels.