The Australian dollar versus the Canadian dollar currency pair looks as if it is delaying any appreciation attempts.
The low of 0.8835 marked the turning point for the evolution of the price, as it got out of the descending channel. But this step needs further work to be accomplished by the bulls, as exiting the descending channel is not enough in order for a healthy appreciation to be sustainable.
The fact that the price was not able to conquer 0.9093 after four attempts — the latter two are highlighted on the chart as 0.9118 and 0.9137, respectively — makes the bears think that they might be in for a movement towards the south. In other words, if the price, after exiting the descending channel, is not able to crystallize a strong appreciation because it is limited by 0.9093, then exiting from the descending trend has no purpose in the first place, as it translates into a “we are still in power” for the bears.
However, because the last high — 0.9137 — is a higher high and the price stopped the depreciation at 0.9010, the bulls still have a chance.
So, as long as 0.9010 is confirmed as support or falsely pierced, then the door to 0.9300 is open. Of course, for that to happen, 0.9030 has to be confirmed as support. Noteworthy is that, in the case of a false piercing of 0.9010, the low of 0.8979 must not be taken out. If it is, then the bears would be much closer to revisiting 0.8918.
The price is trading sideways, being limited by the resistance of 0.9105 and the support of 0.8985.
After its last confirmation of 0.9105 as resistance, the price depreciated until 0.9041 and tried to confirm it as support, but as it failed to do so, it further declined, stopping just above the psychological level of 0.9000 — not highlighted on the chart.
As long as the price does not depreciate further — or, if it does, stops at 0.8985 — the bulls can still pull off a movement towards 0.9041. In such a scenario, chances are that this time they will manage to turn it into a support, aiming for 0.9105.
If this setup fails, then 0.8923 becomes the main target.
Levels to keep an eye on:
D1: 0.9010 0.9030 0.9300 0.8918
H4: 0.9000 0.8985 0.9041 0.9105 0.8923
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