Forex Ichimoku – Kumo Break for Aussie | Oct. 2nd

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Following the 25bp cut by the RBA yesterday, the Aussie has been feeling it, losing about 100pips on an open to close basis.  In the process, the pair formed a daily kumo break setup closing below the cloud for the first time since June this year.  In addition to this, it also formed a medium tenkan-sen kijun-sen cross to the downside which further adds to the bearish picture.  The chikou is not below the kumo, nor even entered it yet, so not in a full bear trend, but the pressure is on.

Ichimoku Wave Structure suggests we are in a possible Y-Wave in the 4th leg of it, so likely at least one more leg before a breakout.  Kumo break traders can look for a rally to short around 1.0321 targeting the Sept. lows at 1.0175.

ichimoku kumo break y wave chikou oct 2nd

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:
The RBA cut rates by 25bp yesterday which sent the Aussie tumbling on the day.  Housing prices also in the UK slumped printing a -1.4% number which is double the expectations at -.07%.

The main thing on investors minds is Spain requesting a bailout which is all but certain at this point as their banks were shown to be undercapitalized by almost €59B which I expect the actual number is about double that.  If they request a full bailout, that should be a risk on event so expect the USD to lose ground in the process.

The Dow Jones closed down about 32pts while Gold trotted in place closing up about $.50

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