The Australian dollar vs. the Canadian dollar considered the direction of the main trend, continuing the downwards move. What could happen next is very interesting.
From the high of 0.9614, the pair finds itself in a descending trend which respected the important levels, confirming each of them as resistance before the next leg down. Now, as the price went under the next important level, represented by the psychological level of 0.9100 (0.91048 on the chart), further downwards movement would be a natural and logical expectation.
Noteworthy is the fact that the candle of July 9, 2019, closed under this psychological level. This is a very strong bearish sign, in terms of direction clarity.
The least amount of time spent by the price immediately under 0.9104, the greater the chances of an extension towards 0.9000, which represents the next target.
On the other hand, a consolidation under 0.9104 would require a new test of the bearish strength. So, if the price, while in a consolidation phase, falsely breaks 0.9104, then the bears can be considered as still holding their ground.
Only a bullish pattern, with a day closing above 0.9104, will postpone any downwards advancement.
The price is in a descending move. As long as 0.9118 is falsely pierced, then the downward momentum remains intact, showing only the beginning of the consolidation phase discussed for the daily chart.
If the price manages to pierce 0.9118 and remain above it, then the window to 0.9147 is open, with the possibility of further rallies towards 0.9189.
Levels to keep an eye on:
H4: 0.9118 0.9147 0.9189.
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