The Australian dollar versus the Canadian dollar currency pair is under bearish dominance and the support of the 0.9100 psychological level seems to give way.
From the 0.9614 high the price entered a descending move which confirmed rigorously key resistance areas — like 0.9483, 0.9387, and 0.9225. In such a bearish driven environment the last support, 0.9104, seems to have little to do in order to withstand the downwards pressure.
If the previous low of July 10, 2019, is taken out then there are two possibilities. The first one is for the price to continue to fall, in which case a later throwback or consolidation is to be expected in order for new sellers to join the new leg down. The second scenario is the one in which the price departures a little from the 0.9104 level only to back above it later on. The latter development will render the piercing as a false one and favor a retest of the 0.9200 psychological level with the possibility of a reversal to take place.
So, if the price continues downwards, then the first target would be 0.9000, while the false piercing will put in place a new extension towards 0.9222.
The downwards movement is respecting the key Fibonacci levels which result by uniting 0.9247 with 0.9089. For now, 11.4 seems to have been confirmed and favored a new lower low. As long as new lower lows are generated, every consolidation and every high (lower high) is a good opportunity for the bears to join in.
However, if the price comes above any previously confirmed retracement level and — of course — above 0.9118, then a pause of the downwards movement is underway.
Levels to keep an eye on:
D1: 0.9104 0.9222
H1: 0.9118 and the Fibonacci retracement levels
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