AUD/USD: bulls remain hesitant
Daily. AUD/USD fixed below the Ichimoku cloud last week.Bulls have gently tested the resistance, created by the lower boundary of the cloud and are no longer trying to reverse the market to the upside. The pair lsipped to 0.7170 by the end of the week. However, strong support is clustered at these levels.
Note that the market is strongly oversold. This could make the pair retrace into the Tenkan-Kijun channel.
Chart. Daily AUDUSD
H4. The downtrend is also clearly seen on the 4-hour chart. After a test of the lower band of the Cloud, Tenkan and Kijun lines formed another bearish cross, while the Cloud extened the range to the downside..
The market is now trading inside the Tenkan-Kijun range. A breakout higher or lower will set further direction to trade.
Chart. H4 AUDUSD