Ivan Delgado
Independent Analyst
- AUD/USD sold-off aggressively paring the last 4 days of gains, and testing the daily tenkan line; the last close below the indicator dates back to April 12 this year.
- Below the .9330/40 tenkan line, further clusters of demand are expected circa .93 and .9250/70, levels that converge with the triple top of late March/early April and an intraday swing low, respectively.
- A break below .9250 will be needed to trigger further sales on AUD, potentially targeting much deeper setbacks towards the .9220 (lows from the March 27 – April 7 box) ahead of .9190 or thereabouts, level where the daily kijun comes at.
- AUD traders should be reminded that the retreat in the Aussie comes after price rejected the bottom of the weekly cloud, an area that covers .9460 up to .9710.
- Back to the daily, AUD bounces should find sellers camped between .9385 and .94, with the break of this latter needed to raise prospects of a trend resumption, with .9425 and .9460 as the main focus.
- Note price action along Asian trade will be determined by trader's reaction to China data dump, which includes the GDP reading for Q1, 2014
Daily ichimoku chart
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