📉 Technical Overview
1. Pattern in Formation: Potential Double Bottom
Price action suggests a potential double bottom pattern forming around the 0.88800–0.88900 support area.
A neckline is clearly identified around the 0.89300 level.
Price is currently between the second low and the neckline — an important “watch zone.”
2. Confirmation Required
The double bottom is not confirmed yet.
A valid long trade setup would require a clear breakout and close above 0.89300 (neckline resistance).
3. Target & Risk
The projected move (measured from the neckline to the bottom of the pattern) gives a target around 0.89740.
That’s approximately +42–43 pips from the breakout point, offering decent risk-to-reward potential.
✅ Trade Idea (Upon Confirmation)
Buy Entry: After a 1H candle closes above 0.89300.
Stop Loss: Below the second bottom – around 0.88900 or slightly below.
Take Profit: Around 0.89740 (measured target of the pattern).
Risk:Reward Ratio: Approx. 1:2, favorable for a breakout trade.
⚠️ Caution
If price fails to break above the neckline and reverses, it may revisit the 0.88800 zone or even break down — invalidating the setup.
Monitor Canadian and Australian economic news, especially commodity data or employment figures, for volatility spikes.
1. Pattern in Formation: Potential Double Bottom
Price action suggests a potential double bottom pattern forming around the 0.88800–0.88900 support area.
A neckline is clearly identified around the 0.89300 level.
Price is currently between the second low and the neckline — an important “watch zone.”
2. Confirmation Required
The double bottom is not confirmed yet.
A valid long trade setup would require a clear breakout and close above 0.89300 (neckline resistance).
3. Target & Risk
The projected move (measured from the neckline to the bottom of the pattern) gives a target around 0.89740.
That’s approximately +42–43 pips from the breakout point, offering decent risk-to-reward potential.
✅ Trade Idea (Upon Confirmation)
Buy Entry: After a 1H candle closes above 0.89300.
Stop Loss: Below the second bottom – around 0.88900 or slightly below.
Take Profit: Around 0.89740 (measured target of the pattern).
Risk:Reward Ratio: Approx. 1:2, favorable for a breakout trade.
⚠️ Caution
If price fails to break above the neckline and reverses, it may revisit the 0.88800 zone or even break down — invalidating the setup.
Monitor Canadian and Australian economic news, especially commodity data or employment figures, for volatility spikes.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.