H4
The bulls are still attacking the Australian dollar market. During the previous session the pair recovered by over 170 points and even reached the 1.0075 level. Thus, the short-term trend remains the same – the Tenkan-sen and the Kijun-sen retained the Gold cross (5), moreover its positive influence is increased by the growth of the Rotation line (3).
Besides, the Kumo and the Senkou Span are narrowing the range. This provides additional positive effect to the current situation.
However in the meantime the Chinkou Span is in the overbought zone. Therefore we might expect a consolidation on current levels or even a reverse of the price to the Rotation line (3).
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H1
In a 1-hour timeframe the bulls have control over the situation as well. However the Ichimoku Cloud has a positive character supported by the advancing Senkou Span A (1). At the same time the Kumo range is quite wide, which can be considered as a warning about continuous recovery of the price without any strong corrections.
At the moment the short-term indicator lines – the Tenkan-sen and the Kijun-sen – are positive as well. Yesterday they formed another Gold cross (5) having placed it much higher.
Thus after testing the Kijun-sen (4) in the nearest hours the bulls might try to carry on with the recovery. However, in case they cannot get out of the Tenkan-Kijun channel and fixate above the Rotation line the corrective decline might be continued up to the upper limit of the Cloud.
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