Japanese Candlesticks Analysis 07.02.2020 (USDCAD, AUDUSD)

USDCAD, “US Dollar vs Canadian Dollar”

As we can see in the H4 chart, after breaking the rising channel’s upside border, which is now a support level, USDCAD has completed another reversal pattern, Shooting Star. The current situation implies that USDCAD may form a slight correction and then resume growing towards 1.3360. At the same time, one shouldn’t exclude an opposite scenario, according to which the instrument may start a new decline to reach 1.3222 and resume forming the ascending channel.

AUDUSD, “Australian Dollar vs US Dollar”

As we can see in the H4 chart, the pair continues falling; it has formed several reversal patterns, such as Harami, not far from the channel’s upside border. Right now, AUDUSD is reversing; the downside target may be at 0.6659. However, we shouldn’t ignore an alternative scenario, which implies that the instrument may resume growing to return to 0.6770.