H4
During Friday the aussie tested new levels: the bulls pushed the rate to the 1.0290 level. However, they did not manage to fixate on the reached levels and the rate closed the trading day slightly lower, at 1.0260.
Today’s session opened with a downside gap, however the bulls managed to immediately close the window and resume the recovery.
In the long term the pair is likely to recover further as the Ichimoku Cloud is still diverging up (1).
Besides, the Kijun-sen (4) is also inclined to continue the uptrend. However, the Tenkan-sen (3) is directed sideways, which denotes that in the short term the market might correct to its levels.
H1
In 1-hour graphs Friday’s trading was located above the Rotation line until the bulls formed a new all-time high. The interest to buying ceased immediately and careful players fixated the profit. This resulted in the price returning to the Kijun-sen, which was preparing to support the market and had a horizontal position. This characteristic of the line prevented the market from further decline.
The Kijun-sen stopped today’s gapdown as well – the bears did not manage to break down the 1.240 level. However, the market will not be able to advance above the Rotation line (3) either. Moreover, the Tenkan-sen itself started to bend down, thus warning about possible rebound to the downside.
Therefore during today’s trading session the aussie is likely to decline to the upper limit of the Cloud, if the Kijun-sen will not provide support again. In this case the downtrend might continue up to the 1.0210; afterwards the recovery will probably be resumed.