H4
Australian currency confirms expectations and continues to fall against U.S. dollar. At yesterday’s trading the pair decreased more than 60 ppt and closed at 1.0550. Yesterday though, bears tested a level at 1.0520 as well.
4-hour frame trading is carried out within the Ichimoku cloud, with a further short-term downtrend. Currently, Tenkan-Sen and Kijun-Sen formed a dead cross (5) and tend to continue downward movement. The Ishimoku cloud started narrowing as a result of price fall, and Senkou Span A and B moved opposite to each other (1, 2).
In the short term though, a downward movement may decelerate as the Chinkou Span is moving towards resold area.
H1
In 1-hour timeframe, the Tenkan-Sen showed resistance to bulls yesterday which tried to restore the market after Friday’s fall. As a result, prices reached new local minimums at 1.0520.
Today sees the continuation of the downward movement as bears tested a level at 1.0500 and thus supported the downtrend.
The Ishimoku cloud continues to fall: Senkou Span A and B look downwards (1, 2).
Currently, short-term Tenkan-Sen and Kijun-Sen held a dead cross (5) and tend to continue downward movement.
Therefore, after a possible consolidation below the current support level at 1.0500, the market is likely to continue its downtrend.