The Australian dollar versus the Canadian dollar currency pair was brought by the bears at the 0.8918 support. Will it have the necessary strength for a strong upwards leg?
After printing the low of 0.8835, the price began a movement towards the north. But most of the development that followed was limited by the resistance of 0.9093 — and supported by 0.9010.
Once out of this consolidation phase, the price revisited 0.8918, under a clear bearish pressure. But the bulls were on their posts and successfully repelled the bearish initiative.
However, the buyers were not able to lock the 0.9010 level, the high of 0.9049 being a very vivid expression of the seller’s intention.
Basically, the price failed two times in a row to conquer the 0.9010 level, and this can only mean that the market is in a bearish profile.
As a consequence, even if the price sits around the support level of 0.8918, the chances for the bulls to win it now are quite slim.
So, from this point onward we could witness a futile attempt of the price trying to establish above 0.8918 — it may oscillate above it for a relatively short time-span, just to strongly retrace under it — or a continuation of the depreciation, from just under the same 0.8918. In both scenarios, the target remains at the previous low, 0.8835, respectively.
Even if the price manages to get above 0.8918, this would only mean better selling prices, as only conquering 0.9010 is now able to shift the market profile.
The depreciation that followed the confirmation of 0.9041 was not able to find support at 0.8985 and thus extended beyond 0.8923.
Just under 0.8923, it seems that the price is etching a short-term consolidation pattern — a pennant — and, as a result, the expectations are for 0.8872 to be paid a visit.
If 0.8923 gets, in the end, confirmed as support, then the price could extend until 0.8985.
Levels to keep an eye on:
D1: 0.8918 and the low of 0.8835
H4: 0.8923 0.8872 0.8985
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