Japanese Candlesticks Analysis 07.06.2019 (USDCAD, AUDUSD)

USDCAD, “US Dollar vs Canadian Dollar”

As we can see in the H4 chart, after updating its closest low and forming Hammer reversal pattern, USDCAD is testing the support level. If the pair rebounds and reverses, it may start a new pullback to reach 1.3482 and then resume the descending tendency. However, we shouldn’t ignore a possibility that the instrument may break the support level and continue its decline to reach 1.3311 without any corrections.

AUDUSD, “Australian Dollar vs US Dollar”

As we can see in the H4 chart, the pair is forming an ascending channel. By now, AUDUSD has rebounded from its upside border and formed Shooting Star pattern there. Judging by the previous movements, at the moment it may be assumed that the instrument may reverse and move towards the support level at 0.6941. In case it breaks this level, the pair may continue falling towards 0.6910. However, we shouldn’t ignore a possibility that the instrument may break the current level and resume its growth to reach 0.7040.