AUD/USD Candlesticks and Ichimoku Analysis

Weekly
    •    Last Candlesticks pattern: Shooting doji
    •    Time of formation: 20 Feb 2017
    •    Trend bias: Sideways

Daily
    •    Last Candlesticks pattern: Bearish engulfing pattern
    •    Time of formation: 21 Mar 2017
    •    Trend bias: Near term down



Although aussie has risen again after finding support just above the Tenkan-Sen and near term upside risk remains for the rebound from 0.7329 to extend gain towards previous resistance at 0.7556 but only break there is needed low has been formed at 0.7329, bring further rise to another previous resistance at 0.7611, having said that, aussie needs to break this level to signal the fall from 0.7750 top has ended bring subsequent rise towards resistance at 0.7680.

On the downside, below the Tenkan-Sen (now at 0.7428) would bring weakness to 0.7388 support but break there is needed to signal the rebound from 0.7329 has ended, bring retest of this level, break there would extend recent fall from 0.7750 top to 0.7300 and possibly 0.7250-60 but reckon downside would be limited to 0.7200-10 and price should stay well above indicated previous chart support at 0.7158, bring rebound later.

Recommendation: Hold short entered at 0.7440 for 0.7240 with stop above 0.7540.



On the weekly chart, after forming a hammer candlestick pattern earlier this month, last week’s rebound formed a white candlestick, suggesting low has possibly been formed there and consolidation with mild upside bias is seen for gain to 0.7560-65, however, break of previous resistance at 0.7611 is needed to add credence to this view, bring further gain towards resistance at 0.7680, having said that, price should falter below said resistance at 0.7750.

On the downside, although pullback to the Kijun-Sen (now at 0.7454) is likely, reckon downside would be limited to 0.7384 support (last week’s low), bring another rebound later. Only a weekly close below there would signal the rebound from 0.7329 has ended, bring retest of this level, break there would extend recent decline from 0.7750 to 0.7290-00 and possibly towards 0.7230, however, downside should be limited to 0.7200 and price should stay well above previous support at 0.7158, risk from there is seen for a rebound to take place later.