Article text goes AUDUSD
After closing below the daily Kijun back in late August, the ensuing sell-off stopped midway into the kumo. It has since then become extremely impulsive (bullish), with the last 4 days reversing and taking out the last 9 days of selling pressure. This is signaling strength by the bulls and that they have retaken control of the pair. They will now likely attempt to take out the 1.0600 highs.
From an ichimoku kinko hyo perspective, when a dominant trend pulls back but only gets partially into the kumo (then breaks back above), it usually leads to another leg up. This leg up often forms a new bullish tenkan-kijun cross signal (in this case, likely medium). When these do form, they usually at a minimum hit the prior SH (swing high) which is around 1.0600.
The chikou has already crossed back above the kijun and may take out the tenkan and price line in one shot should the bullish momentum continue. Using Ichimoku Wave Theory, the pair formed a 7 wave series of N-waves up, and a one-leg N wave down. But this leg down did not take out point 6 in the wave count, so it has not reversed the trend. Therefore, a test of 1.0600 becomes more likely. Should this fail to take out 1.0600, then it should re-attempt to go back down to the 1.0175 swing longs and try to break below the kumo.
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