H4
The Australian dollar started to drop sharply, breaking all support levels formed by Ichimoku indicator lines. Only the 4-hour Cloud is preventing the market from further decline.
Today in the morning the price returned to the 1.0000 level, however the bears failed to break it down.
At the same time the Senkou Span A (1) and the Tenkan-sen (3) have reversed to the downside and are ready for further decline. The Tenkan and the Kijun might form a Dead Cross.
The market will probably consolidate on current levels in the short term, but afterwards the Cloud might be broken down.
H1
Resistance levels indicated in the previous review (upper limit of the Cloud and 1.0070) could not prevent the market from falling. However, the decline started today: the bears started to increase their influence since the morning and have broken the Kumo line.
At the same time the Senkou Span A has decreased significantly, thus narrowing the Cloud range to a critical level. This might result in a change of its character.
However, the short-term downtrend has stopped on an significant support level – 1.0000. In order to pass it the market might have to return to the lower limit of the Cloud – the Senkou Span B (1.0050). The prices will continue declining after bouncing off it and the Tenkan-sen (3).
