AUD/USD, H4
Let’s look at the four-hour chart. Tenkan-sen line has crossed Kijun-sen from above, forming trend reversal pattern. Chinkou Span line has crossed the price chart from above; current cloud is ascending. Under the pressure of the Dead Cross the price has broken through Kijun-sen and Tenkan-sen lines, the latter becomes a resistance level at 0.9234. The nest obstacle for the price on its way down will be the upper border of the cloud at 0.9212.
AUD/USD, D1
On the daily chart Tenkan-sen line is above Kijun-sen, the red line is directed upwards, while the blue one remains horizontal. Chinkou Span line is above the price chart; current cloud is ascending. Tenkan-sen line (0.9176) is the closest support level. One of the previous maximums of Chinkou Span line is expected to be a resistance level at 0.9428.
Key levels
Support levels: 0.9212, 0.9176.
Resistance levels: 0.9234, 0.9428.
Trading tips
On the four-hour chart we’ve got a signal to sell, however on the daily chart this movement is a mere correction. Target for the short-term sales is 0.9212.
Anastasiya Glushkova
Analyst of LiteForex Group of Companies