FX.co ★ Ichimoku graphic analysis: AUD/USD

H4

The bulls are attacking and reaching all-time highs. Yesterday a new high was reached – 1.0336. However, during today’s Asian session the 1.0342 level was tested; afterwards traders started to sell the Australian currency.
As a result, the price formed a Hanging man pattern, confirmed by the last candlestick. This, in its turn, might cause a new wave of selling and a correction decline to the Rotation line.
It is worth mentioning that the Tenkan-sen and the Kijun-sen are coinciding at the moment (3) and are likely to move horizontally, forming a support to the price.

H1

In 1-hour graphs the uptrend remains: the Ichimoku Cloud is still growing up due to the Senkou Span A and B (1, 2). Besides, yesterday’s Gold Cross (5), formed by the Tenkan-sen and the Kijun-sen, still applies. At the same time, the lines are ascending (3, 4).
However, the fact that the market is located at highs will probably lead to a decline to the Tenkan-Kijun channel (3, 4) and testing of the Kijun-sen (4).
If it can provide support, the price might bounce off it to the upside and refresh highs. Otherwise a decline to the upper limit of the Cloud can be expected.