AUDCAD Multi Time-frame Chart Analysis
If you have been following my analysis you will observe that i love working from the higher time-frames down to the lower time-frames. I get a bias on the higher time-frames then look for ideal entry on the lower time-frame. So let us start.
MONTHLY TIME-FRAME
Take a look at price movement for the last 5 months. You can clearly see that price has not gone beyond 0.91243 since crossing it in July 2019 neither has it gone below 0.88826. I really can't determine what price is going to do as the chart is not really clear. I will just connect the 2 lows in the last 5 candle sticks with a trend line then attempt to get a clearer picture on the weekly time-frame.
You can see the trend line i just added. I will be focusing on the area in the blue triangle. Let us go one time-frame lower for a closer look. Shall we?
WEEKLY TIME-FRAME
Looking at the last weekly candle, we should expect price to go up in the coming week. That there is a hammer candle stick pattern with a very long lower tail compared to the body. This is a strong bullish signal. Let us now go down to the daily time-frame.
DAILY TIME-FRAME
Taking a look at the area in the blue rectangle, it is safe to say that price is heading towards resistance at 0.91243. If it will go beyond is yet to be known. It depends on how price reacts to the trend line you can see on the chart or the resistance level. Its time to look for a suitable entry. Let us go to the 4 HR time-frame.
4 HR TIMEFRAME
I decided to add 2 indicators to my chart on the 4 HR time-frame to help me determine a good entry point. You can see the Bollinger Bands and the Ichimoku. I am using a 50 period conversion line & a 200 period base line. Price have formed a rejection off both ichimoku lines. I expect it to pullback and retest the 20 moving average which is the middle of the Bollinger Band so we should be looking to go long around 0.89579 if the 20 MA holds as a dynamic support level.
In conclusion, I feel Price is moving up. I will be sure to update entry, stop loss & take profit targets once market opens and i observe market movement.
Kindly let me know your thoughts on this analysis. Thanks
MONTHLY TIME-FRAME
Take a look at price movement for the last 5 months. You can clearly see that price has not gone beyond 0.91243 since crossing it in July 2019 neither has it gone below 0.88826. I really can't determine what price is going to do as the chart is not really clear. I will just connect the 2 lows in the last 5 candle sticks with a trend line then attempt to get a clearer picture on the weekly time-frame.
You can see the trend line i just added. I will be focusing on the area in the blue triangle. Let us go one time-frame lower for a closer look. Shall we?
WEEKLY TIME-FRAME
Looking at the last weekly candle, we should expect price to go up in the coming week. That there is a hammer candle stick pattern with a very long lower tail compared to the body. This is a strong bullish signal. Let us now go down to the daily time-frame.
DAILY TIME-FRAME
Taking a look at the area in the blue rectangle, it is safe to say that price is heading towards resistance at 0.91243. If it will go beyond is yet to be known. It depends on how price reacts to the trend line you can see on the chart or the resistance level. Its time to look for a suitable entry. Let us go to the 4 HR time-frame.
4 HR TIMEFRAME
I decided to add 2 indicators to my chart on the 4 HR time-frame to help me determine a good entry point. You can see the Bollinger Bands and the Ichimoku. I am using a 50 period conversion line & a 200 period base line. Price have formed a rejection off both ichimoku lines. I expect it to pullback and retest the 20 moving average which is the middle of the Bollinger Band so we should be looking to go long around 0.89579 if the 20 MA holds as a dynamic support level.
In conclusion, I feel Price is moving up. I will be sure to update entry, stop loss & take profit targets once market opens and i observe market movement.
Kindly let me know your thoughts on this analysis. Thanks
Trade active:
Buy AUDCAD.
STOP LOSS: 0.89965
TAKE PROFIT 1: 0.90681
TAKE PROFIT 2: 0.90949
TAKE PROFIT 3: 0.91122
STOP LOSS: 0.89965
TAKE PROFIT 1: 0.90681
TAKE PROFIT 2: 0.90949
TAKE PROFIT 3: 0.91122
Trade closed: stop reached
