FX.co ★ AUD/CAD candlestick analysis for August 5, 2011

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 1.0123 will probably lead to downside movement to 0.9937 where the Fibonacci correction level 61.8 is also located. At the same time the break of 1.1023 will denote the formation of Double bottom.
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.