The Australian dollar versus the Canadian dollar currency pair delays its appreciation after confirming a very important weekly level.
The current descending trend that started from 0.9614 is still under way, but the fact that the price touched and retraced from 0.9100, an important weekly and also psychological level, should have given the first signs of trend change. The bullish engulfing pattern, on June 21, 2019, should have added to the bullish desire to make a convinced rally, but instead the bulls look as if they are out of steam, as the price consolidates just above the aforementioned strong bullish pattern.
The fact that the price is still contained into the descending trend seems to make the bulls not so willing to try and overcome the bearish resistance. As a consequence, if any rallies are to come, then the area of 0.9222 should be considered as a possible bearish pressure zone, thus limiting any further advancement.
The most conservative approach is to wait for the price to exit from the area limited by the 0.9222 resistance and 0.9104 support.
The price is in a range lined by 0.9189 and 0.9147. What is interesting to note is that 0.9203 represents a new higher high, but ended up as a false break, leading the price under 0.9189. This is a sign of bearish dominance. If the price manages to confirm the area of the flat or 0.9147 as support, then the appreciation to 0.9238 is possible. The same is valid for a piercing and confirmation as support of 0.9189.
If 0.9147 gives way, then 0.9118 is the only edge that could keep the bears from causing a fall towards 0.9000.
Levels to keep an eye on:
D1: 0.9222 0.9104
H4: 0.9189 0.9147 0.9118 0.9238
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