Forex Ichimoku – Daily Aussie Kijun-Sen Break – Aug 27th

Posted on Aug 27, 2012 in Daily Signals | 5 comments

AUDUSD
Selling off 8 of the last 12 days, the Aussie has been hemmed in by the Tenkan since the 14th of this month which is quite unusual considering its been in a solid uptrend since the beginning of June.  I commented about this last week on how I suggested a break below 1.0400 and the channel bottom (held in place since June) will likely break to the downside.

This happened yesterday and today for the first time, we have a daily break and close below the Kijun-Sen. This, combined with the tenkan pressure, along with the chikou span entering the price line are all short term bearish also suggesting the momentum is continuing to add to the downside.

Weak intraday rallies up to the daily tenkan can offer sell signals for day traders, while bulls will have to wait till 1.0330 (swing high Jul. 5th) or possibly a bounce off the kumo around 1.0254 before adding any longs as the short term downside pressure is in tact.

For those wanting to learn how to trade the Ichimoku Cloud, along with lifetime access to the Ichimoku traders forum, using rule-based systems, make sure to check out my Advanced Ichimoku Course.

Global Market Commentary:
Volumes were below normal today with the UK holiday but stocks in Europe held while US indices were mostly flat with investors believing likely stimulus is on the cards care of your favorite CBs who love nothing better than propping up failing and zombie banks (i.e. Dexia requesting their third which they ‘promise’ will be their last).

Oil was a little more volatile with hurricane Isaac heading into the Gulf of Mexico.

The main thing on deck is this Friday’s Jackson Hole meeting which investors globally will have their eyes on.  Gold shed about $7 falling towards $1663 losing ground for the 2nd time in 9 days while Silver formed its first losing day in 6.

Upcoming Economic Announcements: