H4
On Friday the Australian dollar recovered to the 1.0160 level and almost fixated above the 4-hour Ichimoku Cloud. The psychologically relevant level 1.0000 held the price and did not let the bulls decline the rate further.
The Tenkan-sen and the Kijun-sen cancelled the Dead Cross at once and united in one line (3), thus pointing at uncertainty on the market. Apparently, if the bulls continue their attacks a Gold Cross will be formed.
Besides, as a result of Friday’s recovery the Cloud’s character might switch to upside – the Senkou Span A (1) has closely approached the Senkou Span B (1, 2).
Therefore, in the nearest time we should expect a rebound off the lower limit and a move outside the Cloud to the upside.
H1
On 1-hour graphs the price is already in a positive area. As a result of the above mentioned recovery, the Ichimoku Cloud changed its character to the upside (1, 2) and the Tenkan-sen and the Kijun-sen formed a Gold Cross (5).
However, the Chinkou Span immediately entered the oversold zone, which caused a rollback to the upper limit of the Ichimoku Cloud today at market opening.
Nevertheless, the Kijun-sen and the Senkou Span B are still providing support and we might expect a rebound to the upside. Probably, the bulls are trying to refresh highs.
