The Australian dollar versus the Canadian dollar currency pair seems to have some trouble passing the 0.8918 level. Are the bears planning something?
The appreciation that started at the low of 0.8062 managed to find its way to the old support area defined by 0.8918.
The rally from 0.8472 succeed in passing the double resistance made possible by the level of 0.8692 and the trendline that starts from the high of 0.9149, but as it approached the old support, the bulls showed signs of losing their conviction.
So, if in the end the bulls don’t conquer the 0.8918 level, then it can be considered that it has been confirmed as resistance. Such an outcome would ring a bell to the sellers waiting to short the market at a very attractive price. The same also goes for the scenario in which the bulls falsely pierce the level.
The bears aim for the first support level, 0.8692, respectively. Even if the bulls might try a comeback from this level, after their earlier defeat, the bears would have what it takes to push the market lower, starting from the better prices that the bulls try to count as gains. The 0.8800 psychological level — not highlighted on the chart — could be one such reference point from where the bears to start pushing the price towards the south.
This may lead to the price getting back under the — at that time — double resistance area coined by the descending trendline and the level of 0.8608.
Only if the bulls manage to conquer 0.8918, then 0.9010 gets exposed.
The price is in an ascending movement since the confirmation as support of the 0.8466 level. The last consolidation phase, the one that sits just under the 0.8872 level, was not able to spark a rally as equal as the previous ones did.
In turn, the bears engaged their short positions, which lead to the price almost topping around the 0.8923 resistance level.
If the bulls don’t manage to conquer 0.8923, then the triple support, formed by the inner our outer, respectively, trendlines, and the 0.8872 level, may turn resistance. In this case, 0.8801 is the main bearish target.
Levels to keep an eye on:
D1: 0.8918 0.8692 0.8608 0.9010
H4: 0.8923 0.8872 0.8801
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