AUDCHF: Double bottom and potential Market Reverse!
Updated
Hello, everybody and welcome to Cybernetics Trading Lab, today we are going to analyse the AUDCHF, translating the market information by using a full technical analysis on different time frames, giving you a personal opinion about the next most likely market movement and helping you to spot and manage market opportunities.[/I]
Higher timeframe:
Lower timeframe:
Since the end of 2020 and the beginning of 2021, the market after an initial strong bullish impulse, clearly visible in high timeframe, it started consolidating in a big expanding structure, which usually is both a bearish and a bullish pattern, depending on how the market breaks and eventually develop.
During the last year, we can see how the price has been following a clear descending channel and currently broke a really strong and interesting support level at around 0.63790.
In lower timeframe, structure within structure and few more bullish confluences could be a sign of a potential market reversal, which is our bias, considering the overall strong bullish impulse that preceded the HTF structure.
When, where and why would we step into the market?
Right now, the market is still developing price action and a long position with no a clear confirmation, could be risky and it could lead to many different losses in order to catch the right signal.
A breakout to the upside of the minor structure inside the descending channel, it may be a first possible entry for a long position, eventually the RR is in your favor, otherwise, conservative traders could catch an interesting bullish movement after the breakout of the channel, targeting the top of the HTF structure.
If you enjoy this trade idea, please support our work with a thumb up and don’t forget to follow our social medias!
Sincerely,
Cybernetics Trading Lab
DISCLAIMER
Please note the views are not investment advice and should be used only for educational purpose.[/I]
Higher timeframe:
Lower timeframe:
Since the end of 2020 and the beginning of 2021, the market after an initial strong bullish impulse, clearly visible in high timeframe, it started consolidating in a big expanding structure, which usually is both a bearish and a bullish pattern, depending on how the market breaks and eventually develop.
During the last year, we can see how the price has been following a clear descending channel and currently broke a really strong and interesting support level at around 0.63790.
In lower timeframe, structure within structure and few more bullish confluences could be a sign of a potential market reversal, which is our bias, considering the overall strong bullish impulse that preceded the HTF structure.
When, where and why would we step into the market?
Right now, the market is still developing price action and a long position with no a clear confirmation, could be risky and it could lead to many different losses in order to catch the right signal.
A breakout to the upside of the minor structure inside the descending channel, it may be a first possible entry for a long position, eventually the RR is in your favor, otherwise, conservative traders could catch an interesting bullish movement after the breakout of the channel, targeting the top of the HTF structure.
If you enjoy this trade idea, please support our work with a thumb up and don’t forget to follow our social medias!
Sincerely,
Cybernetics Trading Lab
DISCLAIMER
Please note the views are not investment advice and should be used only for educational purpose.[/I]
Note
Price still moving inside the LTF structure, it almost reached the top of that and a breakout could give us better perspective for a potential further bullish movement.
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Disclaimer
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