Japanese Candlesticks Analysis 20.01.2021 (USDCAD, AUDUSD, USDCHF)
USDCAD, “US Dollar vs Canadian Dollar”
As we can see in the H4 chart, the descending tendency continues. Right now, after forming an Engulfing reversal pattern not far from the resistance level, USDCAD may reverse in the form of another descending impulse. Later, the asset may continue falling within the descending channel. In this case, the downside target will be at 1.2585. However, an alternative scenario implies a correction towards 1.2765 before the instrument resumes its decline.
AUDUSD, “Australian Dollar vs US Dollar”
As we can see in the H4 chart, AUDUSD is forming another rising impulse. Right now, after forming several reversal patterns, such as Harami, not far from the support area, the pair may reverse and resume growing to reach the resistance area at 0.7835. At the same time, an opposite scenario says that the price may return to 0.7675 before resuming the ascending tendency.
USDCHF, “US Dollar vs Swiss Franc”
As we can see in the H4 chart, the correction within the downtrend continues. At the moment, after forming several reversal patterns, such as Shooting Star, not far from the resistance area, USDCHF is reversing and may continue the descending tendency. In this case, the downside target may be the next support area at 0.8820. Still, there might be an alternative scenario, according to which the asset may grow to return to 0.8910 before testing the support area.