AUD/USD, H4
Let’s look at the four-hour chart. Tenkan-sen line has crossed Kijun-sen from above, forming “Dead Cross” pattern. Under the pressure of the Cross the pair has broken down the cloud and Chinkou Span line has crossed the price chart from above. Senkou Span A and Senkou Span b lines are getting closer prior to the cloud reversal. The closest resistance level is the lower border of the cloud at 0.8900. One of the previous minimums of Chinkou Span line is expected to be a support level at 0.8851.
AUD/USD, D1
On the daily chart Tenkan-sen line is below Kijun-sen, both lines are horizontal. Chinkou Span line is below the price chart; current cloud is descending. After long fall the pair has been corrected to the level of Tenkan-sen line. Kijun-sen line becomes the closest resistance level at 0.8994. One of the previous minimums of Chinkou Span line is expected to be a support level at 0.8848.
Key levels
Support levels: 0.8851, 0.8848.
Resistance levels: 0.8900, 0.8994.
Trading tips
On the four-hour chart the breakdown of the cloud is a signal to sell with target at 0.8851. On the daily chart we can see a correction of the Bearish trend.
Anastasiya Glushkova
Analyst of LiteForex Group of Companies