Ivan Delgado
Independent Analyst
Following Tuesday's sell-off, the exchange rate found decent bids at the daily tenkan intersection, allowing a rebound which has now found resistance at .9385. Note the last close below the indicator dates back to April 12.
- Only a break below .9330/40 tenkan would open up 93, a level that converges with a triple top from late March/early April.
- A break below .93 would be an important technical development, potentially allowing for a deeper target at .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 this ongoing retreat in the Aussie comes after price rejected the bottom of the weekly cloud, an extensive area that covers .9460 up to .9710.
- On the upside, outlook will not be shifted to bullish upon a sustained break of .94, which would then suggest possible targets at .9425 and .9460.
- This week, due to Easter holidays, liquidity is expected to be thinner than usual, resulting in potentially more erratic moves as traders take a long weekend off until next Tuesday.
Daily ichimoku chart
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