AUDCHF – Critical Point In Uptrend Continuation
|If we look at the daily chart of AUDCHF, we can see there was a Kumo breakout which occurred on the open of Wednesday's session. The price consolidated after the breakout. Subsequently, failing to continue the upward trend for the time being. Tenkan Sen and Kijun Sen are flat showing there is neither strong buying momentum nor strong selling momentum. Senkou Span A and Senkou Span B is also flat, indicating that we are likely to see the consolidating move continue.
Looking at the 4-hour chart we can see that the price failed to hold above the support level established by Tenkan Sen and Kijun Sen. However, the previous two candles formed a very bullish chart pattern with a hammer followed by a bullish engulfing candle. The break below Tenkan Sen and Kijun Sen may be a false breakout, a close above this level could indicate a potential buying opportunity.
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