FX.co ★ Ichimoku graphic analysis: AUD/USD

H4

The Australian dollar formed new all-time highs slightly below the 1.0600 level and continued to correct today amid a decline on Asian markets.
In 4-hour graphs this decline caused a break of the Kijun-sen (4) down and movement directed to the upper limit of the Ichimoku Cloud.
At the same time, the Tenkan-sen (3) reversev to the downside as well and followed the price. It is possible that in the nearest time the Tenkan-sen and the Kijun-sen will form a Dead Cross. This will denote the market’s intention to correct to the upper limit of the Kumo.
In general, upside trend remains – the Cloud has a positive character.

H1

As a result of the correction the 1-hour Ichimoku Cloud was broken down. Neither the upper limit, nor the horizontal Senkou Span B could not provide support.
Short-term tendency changed yesterday by the end of the trading: the Tenkan-sen and the Kijun-sen formed a Dead Cross (5), and the Chinkou Span broke the price graph and appeared to be in a negative area. The Senkou Span A (1) also started to narrow the range of the upside Cloud, thus threatening to change the long-term trend.
Today the bears pushed the lower limit of the Kumo – the Senkou Span B, - and at the moment are trying to fixate below. Therefore, in case they succeed, the aussie is likely to decline to 1.0380.
However, on current levels we should refrain from sells, as the Chinkou Span entered the overbought zone. This denotes temporary consolidation under the lower limit of the Cloud or even a return of the price in the Kumo.