Today we are going to look at another quite interesting currency pair AUD/USD and taking advantage of the recent close of last week, we are going to start analyzing the situation from this particular timeframe.
Weekly
As you can clearly see on the weekly chart, after the rise of the pair to 0.7663, there was a sharp reversal downwards and the reversal of the shooting star candlestick pattern was formed. A characteristic feature of this candle is its very long upper shadow, which clearly shows a dramatic change in market sentiment. After such a candlestick, as a rule, there is a downward trend, which we saw in the end. The pair not only returned to the boundaries of the Ichimoku indicator cloud, but also broke through the red Tenkan line, the 50 simple moving average and also fell below the black 89 EMA, the orange-200 EMA and the blue Kijun line. Thus, there is virtually no doubt that the rise that started from 0.6970 is over, and now the pair has a clear path to the south.
Another characteristic feature of the AUD/USD bear market was the bulls' unsuccessful attempt to take the AUD/USD back into the Ichimoku cloud during the trading of the past five days. The Australian dollar continues to be under pressure as traded this week and at the time of writing, it is testing the support at 0.7168. So far, it is bouncing back from this level, but there is still plenty of time before the week ends and the bears on the Australian currency could reach their target. If the current trade closes under 0.7168, the sellers will focus on the psychological level of 0.7000. Notably, slightly below this critical level is support at 0.6970. In my opinion, only a true breakout of this level will clearly indicate that the pair is ready to move lower. In case of a weekly reversal candlestick, there is a possibility of a corrective pullback to 0.7300, just above which there is a cluster of previously broken indicators.
Daily
On the daily price chart, the pair came out of the Ichimoku cloud yesterday. However, the long lower shadow of the April 25 candlestick leaves the possibility of attempts to return higher. And here again we can look at 0.7300, where the red Tenkan line is located. Today, the pair has already tried to return to the cloud, but nothing good has come out of it so far. As for trading recommendations, the main one is selling after an ascent to the strong technical level of 0.7300. This is probably the most reasonable positioning at the moment.