AUDUSD has been trading below the daily Ichimoku cloud since early June and has been in a consolidation pattern since its decline from the May 14 high of 0.8162 down to 0.7597. The market has been capped below the Ichimoku cloud since the beginning of June.
The overall bias for AUDUSD remains on the downside especially since prices are capped below the tenkan-sen line and the RSI is below 50 which supports the downside bias. The bearish crossover of the tenkan-sen line below the kijun-sen line that took place on May 26 strengthened the bearish outlook and there is scope to fall to the June 1st low of 0.7597. A break below this would then take the market to the 6-year low of 0.7532. A fall below 0.7532 would confirm a resumption of the downtrend that was in progress from the decline from 0.9400 (September 2014).
Only a decisive break above the Ichimoku cloud could indicate a trend reversal and shift the bias to the upside.
Risk Warning: Forex, Commodities, Options and CFDs (OTC Trading) are leveraged products that carry a substantial risk of loss up to your invested capital and may not be suitable for everyone. Please ensure that you fully understand the risks involved and do not invest money you cannot afford to lose. Please refer to our full Risk Disclosure.