7 Dimension analysis for AUDCHF 😇 7 Dimension Analysis
Analysis Time Frame: Daily
1: Price Structure:
The current price structure is bearish, characterized by a Breakout from Sideways (BoS) behavior. The move is impulsive and nearing completion, with a major weekly demand area acting as support. The inducement is not yet confirmed, and there have been 3 pullbacks during the last corrective leg. Notably, there are no unmitigated order blocks during the entire impulsive leg, indicating no significant resistance until the Choch level. Confluence is observed on the daily, weekly, and monthly time frames, with a demand zone present in the same area.
2: Pattern
🟢 TREND LINES:
Trend lines are acting as resistance levels, and a closing above them will provide final confirmation.
🟢 CHART PATTERNS:
A potential Head and Shoulders pattern is forming, but a massive volume and engulfing bar at the last leg's low point add complexity. Additionally, there is a weekly liquidity sweep and a Fakeout Within 1 Bar pattern. These patterns suggest that the price may move sideways from here to form a proper demand base.
🟢 CANDLE PATTERNS:
A Change in Guard pattern appeared at the bottom, indicating a potential reversal.
Momentum (Engulfing) occurred with massive volume, adding to the potential bearish reversal signal.
Momentum Fakeout Reversal also occurred with significant volume.
A Narrow Range is forming with 3 candle squeezes yet to be confirmed.
The last corrective and current impulsive candles are inside the reversal candle.
Today's session opened low but experienced bullish control throughout the day.
3: Volume:
Volume on the Fakeout is good, indicating significant market interest.
Volume on the demand is heavy at the initial point, showing strong buying activity.
4: Momentum RSI:
🟢 Zone: The RSI is currently in a sideways zone.
🟢 Range Shift: Initially sideways to bullish.
🟢 Divergence: Hidden divergence with low momentum observed. Momentum has been holding in the bullish zone for a prolonged period.
5: Volatility Bollinger Bands:
🟢 Middle Band: A resistance breakout will be crucial for the initial upside move.
🟢 Squeez: Just started, suggesting potential low volatility ahead.
🟢 Headfake: Only one candle so far, not yet confirmed.
6: Strength ADX:
The trend is currently bearish. But initial reversal can start from this zone
7: Sentiment ROC:
The rate of change indicates that AUD is gaining strength.
✔️ Entry Time Frame: H1
✅ Entry TF Structure: Bullish
☑️ Current Move: Impulse Move with one Choch.
✔ Support Resistance Base: Weekly support area and Fakeout.
☑️ Candles Behavior: Engulfing pattern making a valid low
☑️ FIB Trigger Event: Activated.
☑️ Trend Line Breakout: Confirmed.
☑️ Final Comments: Consider buying as an initial test entry.
💡 Decision: Buy
🚀 Entry: 0.5850
✋ Stop Loss: 0.5795
🎯 Take Profit: 0.6090
😊 Risk to Reward Ratio: 1:3
🕛 Expected Duration: 5 Days
Summary:
The analysis suggests a bearish price structure with an impulsive move nearing completion. Various chart patterns and candlestick formations add complexity to the overall scenario. The RSI indicates a sideways zone, and the ADX confirms the bearish trend. A potential bullish entry is identified based on the current move, support resistance, and FIB trigger event. The risk-to-reward ratio is calculated at 1:3, and the expected duration for the trade is 5 days.
