The pair has broken down the cloud and is still falling

October 16, 2014

AUD/USD, H4

Let’s look at the four-hour chart. Tenkan-sen line is above Kijun-sen, they are both horizontal. Chinkou Span line is below the price chart, the cloud can’t reverse and remains descending. The pair has broken down the cloud and is still falling. The closest resistance level is Kijun-sen line (0.8755). One of the previous minimums of Chinkou Span line is expected to be a support level at (0.8685).

AUD/USD, D1

On the daily chart Tenkan-sen line is below Kijun-sen, they are both horizontal. Chinkou Span line is below the price chart, current cloud is descending. The pair is consolidating around Tenkan-sen line, which is now a resistance level (0.8775). One of the previous minimums of Chinkou Span line is expected to be a support level at (0.8636).

Key levels

Support levels:  0.8685, 0.8636.

Resistance levels: 0.8755, 0.8775.

Trading tips

On the both charts we can see the development of the downward movement. Targets for the short positions are 0.8685 and 0.8636.

Anastasiya Glushkova

Analyst of LiteForex Investments Limited

Publication source
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