USDCAD Candlesticks and Ichimoku Analysis
|
Last Candlesticks pattern |
Time of formation |
Trend bias |
| Weekly |
Evening star |
July 2009 |
Down |
| Daily |
Three Black Crows |
15 July 2009 |
Down |
The greenback fell again after meeting renewed selling right at the Tenkan-Sen, suggesting the decline from 1.3066 top has resumed and further weakness to 1.0584-90 (50% projection of 1.3066 to 1.0784 measuring from 1.1725 and 61.8% Fibonacci retracement of 0.9059 – 1.3066), then towards 1.0315 (61.8% projection) is likely, however, break of support at 1.0298 is needed to retain bearishness, otherwise, risk has increased for a rebound later.
On the upside, only a weekly close above the Tenkan-Sen (now at 1.0893) would bring another bounce to the resistance at 1.1126, however, it is necessary to see a sustain break of this level to confirm a temporary low has been formed and bring correction of recent decline to the Ichimoku cloud bottom (now locating at 1.1442), break there would encourage for retracement of the entire fall from 1.3066 towards 1.1562 (38.2% Fibonacci retracement of 1.3066 to 1.0632) but Kijun-Sen (now at 1.1674) should hold.
On the daily chart, despite rebounding to 1.0927 on Monday, the greenback failed to stay above the Tenkan-Sen and Kijun-Sen and renewed selling interest emerged there, then the currency pair fell again, indicating the decline from 1.3066 top has resumed and weakness to 1.0580 (50% projection of 1.1725 to 1.062 measuring from 1.1126) and later towards 1.0451 (61.8% projection) is likely but reckon 1.0315 (61.8% projection of 1.3066 to 1.0784 measuring from 1.1725) would hold.
On the upside, whilst recovery to 1.0800 cannot be ruled out, price should falter below resistance at 1.0927 and bring decline to aforesaid downside targets. Only a daily close above said resistance would suggest a temporary low is possibly formed and gain to the Ichimoku cloud bottom (now at 1.1009) would follow. However, it is necessary to see a rise above resistance at 1.1126 to confirm and bring retracement of recent decline to the Ichimoku cloud top (now at 1.1179), then towards 1.1300.
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