H4
As expected, current levels (1.0150) provide a quite strong resistance to further advance of the Australian dollar. Despite the fact that a new local high was reached yesterday, the bulls could not break above the 1.0150 level and the market started to roll back to the 4-hour Tenkan-sen.
At the same time, the Tenkan-Kijun channel (3, 4) narrowed due to the recovery of the Kijun-sen (4).
Nevertheless, general positive sentiment remains on the market: the Ichimoku Cloud has a positive character, short-term lines are directed up (3, 4).
Therefore in the nearest time we should expect a rebound off the Rotation line (3) to the upside.
H1
On 1-hour graphs the upper limit managed to provide a support to the market and did not let the bears decline the rate further. The trading was located near the Senkou Span A for the whole day and by the end of the session bullish sentiment allowed resuming the growth.
The Tenkan-sen and the Kijun-sen immediately formed a Gold Cross (5); afterwards a “line straightening” signal appeared. The Chinkou Span broke the price graph up, which also indicated the end of the consolidation.
At the moment the market is declining moderately, however the Tenkan-sen and the Kijun-sen are ready to provide support to the price.
Given the general bullish sentiment and the positive character of the Cloud we might assume that the upside movement will be continued.
