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3 Jun 2014
AUD/USD testing the non-committed longs
FXStreet (Guatemala) - Ivan Delgado, Head of Asian Editors at FXStreet explained in an article that downside risks are picking up for the AUD/USD, clearly identified on the shorter time frames while longer time frames require confirmation.
Key Quotes:
AUD/USD Daily Chart
“Market remains in a consolidation phase inside the daily cloud…well capped by the daily kijun line”.
“The future cloud continues to shrink, suggesting bullish momentum keeps fading, while the chikou is now in the middle of a congested area”.
AUD/USD H4 Chart
“After the vigorous bounce off 0.9210, price saw a brief drive above a bearish kumo cloud before sellers stepped in, taking the price decisively back down to now potentially threat 0.9210/0.92”.
“The chikou is positioned in an congested area”.
AUD/USD H1 Chart
“Despite faced with a think kumo cloud in the hourly, bears penetrated the area with ease, taking prices well below the cloud and the kijun, while loss of momentum along the US has allowed the tenkan to catch up with current price”.
Conclusion
“Shorter timeframes are starting to align in favour of further selling, while the daily still needs further clarity by breaking below the 0.92 support zone, an event that may occur in the current Asia session contingent to the Aus retail sales/HSBC China PMI/RBA outcomes”.
“Failure to break below the level ensures further period of non-directional bias ahead”.
Key Quotes:
AUD/USD Daily Chart
“Market remains in a consolidation phase inside the daily cloud…well capped by the daily kijun line”.
“The future cloud continues to shrink, suggesting bullish momentum keeps fading, while the chikou is now in the middle of a congested area”.
AUD/USD H4 Chart
“After the vigorous bounce off 0.9210, price saw a brief drive above a bearish kumo cloud before sellers stepped in, taking the price decisively back down to now potentially threat 0.9210/0.92”.
“The chikou is positioned in an congested area”.
AUD/USD H1 Chart
“Despite faced with a think kumo cloud in the hourly, bears penetrated the area with ease, taking prices well below the cloud and the kijun, while loss of momentum along the US has allowed the tenkan to catch up with current price”.
Conclusion
“Shorter timeframes are starting to align in favour of further selling, while the daily still needs further clarity by breaking below the 0.92 support zone, an event that may occur in the current Asia session contingent to the Aus retail sales/HSBC China PMI/RBA outcomes”.
“Failure to break below the level ensures further period of non-directional bias ahead”.