AUD/USD: testing intraday resistance
- Ichimoku Cloud bearish;
- ADX and DI bullish;
- RSI neutral.
The AUD/USD currency pair is currently testing the bottom band of the Ichimoku Cloud, which is an important intraday resistance. If the bulls were able to lift the rate inside the cloud, then we’d see a consolidation phase if not a bullish continuation. On the other hand, a field test of the resistance could finish the upside rebound, and create a new wave of selling pressure as the overall sentiment of the four-hour chart setup below is still bearish.
The lack of momentum might be a factor that would not allow the bulls to succeed. The ADX and DI indicator has the mainline in the negative zone, although the green line appears above the red one. The Relative Strength Index could not advance above the 50% threshold and is coming back to it. If breached, then the oscillator would point to a bearish sentiment as well. AUD/USD could slid back to the recent bottom at 0.68693 as a result.
Pivot points:
R1: 0.69565 (Ichimoku Cloud);
R2: 0.70000 (round-figure extension);
S1: 0.69170 (Ichimoku Base line);
S2: 0.68693 (recent bottom).
