FX.co ★ AUD/CAD Candlestick Analysis for August 22, 2011

AUD/CAD is probably closing the technical rebound having been unable to break through the support level of 0.9937.
Earlier on the intraday chart of the AUD/CAD pair a candlesticks’ combination “Evening Star” had formed, which was showing a bearish signal.
This combination of candlesticks was formed when the pair had failed to puncture the support level around 1.0550, i.e. the bulls did not fixate. Further on the bears started to dominate.
Breaking through the Fibonacci 23.6 rate means that this viewpoint is correct. Fixing below the support level of 1.0123 caused a decline targeted to 0.9937, where another level of correction 61.8 is placed. Thus break of 1.0123 showed the formation of a double top.
It should be noted that stop orders are recommended to be placed slightly above 1.0378 as passing this resistance rate will open the way to 1.0550.