AUD/CHF - Bearish Outlook Near Key ResistanceOverview:
The AUD/CHF currency pair is currently encountering a significant resistance area, coinciding with the formation of an XABCD harmonic pattern. This convergence suggests a potential bearish movement in the near future.
Entry Point:
Consider initiating a short position near the level of 0.59700. This entry point aligns with the technical resistance and the anticipated bearish momentum.
Stop Loss:
Place a stop loss order at approximately 0.59962 to mitigate potential losses in case of a reversal or unexpected market volatility.
Take Profit Levels:
1. TP-1: Set the first take profit target at 0.59462 to capture initial downward movement and secure profits.
2. TP-2: Aim for the second take profit level at 0.59220 to capitalize on further bearish momentum.
3. TP-3: The third take profit target is located at 0.58970, reflecting a deeper potential decline in price.
Risk Management:
It is essential to adhere to proper risk management principles, ensuring that the risk-to-reward ratio is favorable for each trade. Adjust position sizes accordingly to align with individual risk tolerance and overall trading strategy.
Market Monitoring:
Continue to monitor the AUD/CHF pair closely for any signs of reversal or deviation from the anticipated bearish trajectory. Adjust stop loss and take profit levels accordingly as the trade progresses.
Conclusion:
Based on the technical analysis and the identified resistance area along with the XABCD harmonic pattern formation, a bearish outlook is favored for the AUD/CHF currency pair. Exercise prudence and discipline in executing the trade plan outlined above, while remaining vigilant to market dynamics and potential developments.
Audchfdaytrade
7 Dimension analysis For AUDCHF 🕛 TOPDOWN Analysis - Navigating Crucial Support Levels
Overview: The monthly perspective reveals a historical support level established in March 2020, where strong buying interest persists. Recent monthly candles, with wicks and a liquidity sweep, suggest a potential consolidation phase. On the weekly chart, a descending triangle formation is evident, indicating a period of consolidation. However, this doesn't imply missing swing opportunities. Transitioning to the daily chart, the bearish swing structure is clear, but with potential for bullish reversal.
😇 7 Dimension Analysis
Time Frame: Daily
1️⃣ Swing Structure: Bearish
🟢 Structure Behavior/BoS: Break of Structure
🟢 Swing Move: Impulsive; inducement completed.
🟢 Pull Back: 1st pullback underway, possibly deep.
🟢 Internal Structure: Sideways; confluence across multiple time frames leading to confusion.
🟢 Resistance/Support Areas: Complex interplay with resistance, supply, distribution, and internal trendlines. Triangle breakout can guide targets.
Traps: Internal trendline breakout considerations for potential false moves.
2️⃣ Pattern
🟢 CHART PATTERNS
Reversal
Presence of rounding patterns and a double bottom.
Continuation
Descending Triangle; awaiting breakout confirmation.
🟢 CANDLE PATTERNS
Notable Observations:
Bullish candles dominating the area.
Blended combo of three candles signals bullish momentum.
3️⃣ Volume: Bullish volume dominance based on Volume Spread Analysis.
4️⃣ Momentum RSI:
🟢 Momentum State: Sideways, flat range.
🟢 Range Shift: Yet to shift; sideways to bullish divergence.
🟢 Divergence: Strong bullish divergence observed.
🟢 Loud Moves: Bullish loud move signifies market control.
🟢 Oversold Rejections: Three rejections, indicating buyer strength.
5️⃣ Volatility Bollinger Bands:
🟢 Middle Band Support: Provides bullish support.
🟢 Possible Compression: Suggests potential volatility before a bullish move.
6️⃣ Strength
Rate of Change: AUD stronger than CHF.
✔️ Entry Time Frame: Daily
✅ Entry TF Structure: Sideways
☑️ Current Move: Impulsive
✔ Support/Resistance Base: Triangle trendlines
☑️ Candles Behavior: Ranging
☑️ FIB Trigger Event: Confirmed.
☑️ Trendline Breakout: Awaited.
☑️ Final Comments: Wait for breakout confirmation.
💡 Decision: Exercise patience.
🚀 Entry: Await breakout confirmation
✋ Stop Loss:
🎯 Take Profit: 2nd Exit if Internal Structure Changes, 3rd Trendline Breakout or FOMO.
😊 Risk to Reward Ratio:
🕛 Expected Duration:
SUMMARY: The analysis highlights a crucial support level from March 2020, emphasizing potential consolidation. The weekly descending triangle suggests a pause in the trend, leading to a more detailed daily analysis. The complex interplay of support and resistance areas demands caution, with a focus on potential breakout scenarios. Patience is key, with detailed considerations of volume, momentum, and candle patterns in this nuanced market situation.
Aud/Chf Can the uptrend continue? (Feedback appreciated)Forgive me I am not specialist when it comes to knowing all the bullish and bearish pattern formations YET. But it has been in a clear bullish channel for a while now. But recently its created higher lows and highs. It can continue to rise up as I have drawn. I can tell it is in a breakout formation to the upside or down is too early to tell.