AUD/CAD H4 Possible Bullish Reversal Coming
This pair has been in a Bearish Descending Channel since the pair hit the 1.0 Interbank Price Level in February this year (7 months ago). It was very important because it meant that 1 Australian Dollar almost became equal to 1 Canadian Dollar. The Fail-to-Return (FTR) where the Downtrend Channel started is at the 0.9870 area. This is also near the QML Level.
The Demand Zones and the Supply Zones are labelled on the Chart. The Blue Rectangles in the chart are the Demand Areas (Good places to Buy) while the Red Rectangles are the Supply Areas (Good places to Sell).
There has been some Break of Market Structure in the Channel with the Sellers capturing two Demand Areas from the Buyers and turning them into Turncoat Resistance Supply Areas for the next down moves.
We have some good confluence in some areas, especially the 0.9028 - 0.9080 Support Area. We have Confluence of Four (4) types of Support in this Area:
📍For Trend Traders and Channel Traders, this Demand Area is at the bottom of the Channel (Trendline Support).
📍For Supply and Demand Traders, we have an Untested Demand Zone.
📍For Elliot Wave Traders, the Final Impulse Wave 5 for this Bearish Channel is almost completed as you can see in the wave count in the chart.
📍For Harmonic Traders, we also have a Bullish ABCD pattern that has formed closed to the Untested Demand. Leg AB is 0.9386 - 0.9152 (234 pips in length). Leg CD starts from C at 0.9314
Using the 234 pips Measured Move (MM) for Leg CD, we expect Point D to be at 0.9080 which is 234 pips from Point C. Coincidentally, Point D also falls in our Untested Demand Zone.
High Probability Setups. Its great to be back. Cheers!!
The Demand Zones and the Supply Zones are labelled on the Chart. The Blue Rectangles in the chart are the Demand Areas (Good places to Buy) while the Red Rectangles are the Supply Areas (Good places to Sell).
There has been some Break of Market Structure in the Channel with the Sellers capturing two Demand Areas from the Buyers and turning them into Turncoat Resistance Supply Areas for the next down moves.
We have some good confluence in some areas, especially the 0.9028 - 0.9080 Support Area. We have Confluence of Four (4) types of Support in this Area:
📍For Trend Traders and Channel Traders, this Demand Area is at the bottom of the Channel (Trendline Support).
📍For Supply and Demand Traders, we have an Untested Demand Zone.
📍For Elliot Wave Traders, the Final Impulse Wave 5 for this Bearish Channel is almost completed as you can see in the wave count in the chart.
📍For Harmonic Traders, we also have a Bullish ABCD pattern that has formed closed to the Untested Demand. Leg AB is 0.9386 - 0.9152 (234 pips in length). Leg CD starts from C at 0.9314
Using the 234 pips Measured Move (MM) for Leg CD, we expect Point D to be at 0.9080 which is 234 pips from Point C. Coincidentally, Point D also falls in our Untested Demand Zone.
High Probability Setups. Its great to be back. Cheers!!
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