H4
As expected, the Australian dollar fixated below the 4-hour Ichimoku Cloud and continued to decline.
The short-term Tenkan-sen and Kijun-sen formed a Dead cross (5) and are still moving to the downside.
The negative sentiment is likely to remain on the market as after the price fixated below the Kumo it formed a “breakdown-rebound off the Senkou Span B” pattern. Besides, the Ichimoku Cloud can change its character to the downside in the nearest time (1, 2).
The next support levels are located at 1.0540 and 1.0510.
H1
In a 1-hour timeframe the situation was taken over by the bears. Yesterday here a “breakdown-rebound off the Senkou Span B” pattern was also formed. It allowed the bears to continue declining and refresh local lows.
Today the downtrend was continued after an attempt of the bulls to recover the market. In early trading session they broke the resistance of the Tenkan-sen and the Kijun-sen, however they did not manage to fixate in a positive area.
At the moment there is a consolidation on the market – all Indicator lines are directed sideways (1, 2, 3, 4). Price recovery to the Rotation line (3) is possible. Then the decline might be resumed.
