The combination Australian Dollar/Canadian Dollar (AUD/CAD) jumps from the descending trendline down.
A continuation of the downtrend downwards to the next support at 0.88807 will persist.
Caution: A possible reversal of the trend in the direction of the resistance level at 0.89308 is also possible.
Please make appropriate stop-loss settings in the case of a trade.
Besides a ‘Last Engulfing Top’ candlestick pattern is existing. The candles form ‘Last Engulfing Top’. which is a negative pattern signal. The currency pair is likely to go down. According to the Encyclopedia of Candlestick Charts by Thomas N. Bulkowski, the success rate of a ‘Last Engulfing Top’ heading down is 68% (Bull Market) & 67% (Bear Market).
Support & Resistance | Price Range* |
---|---|
3rd High | 0.89829 |
2nd High | 0.89718 |
Next High | 0.89308 |
Current Price | 0.89079 |
Next Low | 0.88807 |
2nd Low | 0.88790 |
3rd Low | 0.88001 |
0.89308 – 0.89301 – 0.89718 – 0.88807 – 0.88833 – 0.88790
Trading Signals: FOREX – AUD – AUD/CAD – CAD – Last Engulfing Top