Tuesday, August 2, 2011

AUD/USD Ichimoku Technical Analysis - August 2, 2011

H4 : The Australian dollar started the new trading week with a gap up. However, the pair did not manage to refresh highs. After reaching 1.1065 the market started to fall down sharply, which resulted in Dead cross (5) in the 4-hour graph and a breakdown of the support levels formed by the Tenkan-sen and the Kijun-sen (3, 4). 

Nevertheless, the major trend is positive – the Ichinoku Cloud is inclined to continue the uptrend. Therefore, as soon as the current sideways movement (all indicator lines – 1, 2, 3, 4 – are directed sideways) ends we should expect further recovery.
The upper limit of the Kumo is likely to be tested again.

H1 : As a result of yesterday’s decline the price tested the lower limit of the 1-hour Ichimoku cloud. However, they could not break it down, and this caused new buying that almost took the market to the positive area above the Kumo.

However, the Tenkan-sen and the Kijun-sen managed to form a Dead cross (5) that is still having negative influence on the sentiment of short-term traders. Therefore, during next few hours we should expect a fight inside the Cloud thet will decide the direction of further movement. If the pair fixates above the Senkou Span A, the global uptrend will be continued; if the bears will push down the Senkou Span B the market will remain in correction.

Performed by Vadim Idrisov, Analytical expert
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