AUD/USD: what break through cloud threatens
Tatiana Norkina, FBS analyst
Yesterday's US Federal Reserve meeting has brought a bunch of uncertainties, causing the US dollar to decline sharply against world currencies. Thus, the AUD/USD currency pair rate has soared by more than 240 pips, changing the technical picture on the four-hour charts entirely. There has been a break of the Ichimoku cloud upwards and, soon, the bulls may try to gain foothold in the positive area in order to change the main daily trend.
The Tenkan and Kijun lines, respectively, have cancelled the dead cross effect, while the cloud itself has narrowed to the maximum, ready to change its character. Oscillators are also positive now.
Nevertheless, while there is no consolidation, it is too early to move to the bulls side, besides, there are quite a lot of resistance levels in the upper part of the chart. At the same time, sales of the currency pair are also dangerous. Under these circumstances, it is better to stay out of the market.
Technical levels: support – 0.7720/30; resistance – 0.7780, 0.7805, 0.7830.
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