"AUDCAD Analysis: Engulfing Pattern and Potential Trend Reversa"💹 Let's dive into the analysis of this favorite forex pair of mine! We'll update our previous analysis and check our triggers together for the upcoming week.
⏳ Higher Time Frame Analysis:
In higher time frames like the weekly, similar to most forex pairs, AUD/CAD is oscillating within a long-term box. We observe the fluctuations and trends more clearly in lower time frames.
📅 Daily Time Frame Insights:
On the daily time frame, after finding support at the 0.85918 level, we have reached the top of the box. The candles are erratic, with shadows indicating weakening buyers and potential sellers' presence.
🔍 In our previous analysis, we aimed to open positions in the direction of the ongoing trend, waiting for the trigger and break of the 0.90549 resistance. After breaking it, lower time frames allowed for position openings, reaching the 0.91245 resistance.
💡 After hitting this resistance, buyers showed little interest in opening positions, and currently, the pair is oscillating between the 0.90878 and 0.90549 box.
⏳ Four-Hour Time Frame Analysis:
In the 4-hour time frame, the latest candle displayed significant seller strength, engulfing the previous candles and increasing the likelihood of a decline. If we break the 0.90549 support, we will have formed a lower high and broken a lower low.
📉 Short Position Trigger:
We need to break the 0.90549 support for a short position. This will indicate a new trend, though we don't necessarily need a trend change since the higher time frames are still ranging.
If you receive this analysis early, you can use the current 4-hour engulfing candle with a stop loss around the 0.90878 level.
📈 Long Position Trigger:
For a long position, if we fake out the support, we can move to lower time frames. Breaking the 0.90878 trigger can open a long position, but it is more logical to wait for a break of 0.91245 for confirmation.
🛡️ Future Additions:
Soon, we will add a new section to this channel about bullish crypto coins. We will analyze and review this data thoroughly for you! :)))
🔻 Key Support Levels:
0.90173 , 0.89702 , 0.88951
🔺 Key Resistance Levels:
0.91245 , 0.92073 , 0.93288
🌟 I hope you have a great weekend and can utilize this analysis for a profitable week ahead! :))