Thursday, July 14, 2011

AUD/CAD Candlestick Technical Analysis - 14 July 2011

In a daily graph the AUD/CAD is bouncing off after a decline to the support level 1.0189. However, the viewpoint at the pair remains bearish.

Earlier in a daily graph the AUD/CAD has formed an Evening Star candlestick combination indicating bearish signal, confirmed further. 

This candlestick combination was formed after the pair could not break the resistance level 1.0550, which means that the bulls could not solidify here and the bears started to increase their influence.

Break of the Fibonacci 23.6 correction level means that this point of view is correct. If the pair fixates below the support level 1.0189 will probably lead to downside movement to 0.9937 where the Fibonacci correction level 61.8 is also located.

Downside movement is supported by the divergence on the RSI and the Stochastic.

It is worth mentioning that stop loss should be placed slightly above the 1.0550 level as its break will target the pair to 1.0600.

Performed by Vladimir Donin, Analytical expert
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