AUDCHF: Buy on D1 (Potential Reversal Opportunity)
AUD/CHF - Daily Chart
I can see that prices are currently near a key monthly level of around 0.65500. The pair has been in a heavy downtrend however price have previously reversed when reaching the 0.65500 level. There was a bullish pin bar candle when prices reached the 0.65500 level which could potentially indicate a reversal. I would not be surprised if prices re-test the support level before making it's next move, whether it's a reversal or a continuation of the downtrend.
I have set a buy stop order for an entry at the 0.65500 level (key monthly level). Ideally, I would like to see a bullish engulfing candlestick pattern for an entry.
Two take profit levels are as follows:
TP1: 0.69000 (Key Daily Level)
TP2: 0.71500 (Key Weekly level)
Another early TP level could be around the 0.67000 area, possibly set as a trailing stop once prices reach TP1.
I've set the Stop loss at 0.64500 which is 100 pips below the key monthly level (0.65500).
Alternative Scenario:
Prices may break this key monthly level and continue to fall further. If entry does not occur and prices continue to move down, wait until prices find a stable support level before re-evaluating. Fundamentally, there has been concerns regards the Australian economy which may continue to weaken the AUD over the long term.
What to work on:
1) Better Entry/Tighter Stop Loss
Understand how I can get a better entry as I feel 100 pips is quite a big distance from my entry price. Maybe it is something I can look for in the lower time frames (H1 & H4) or maybe be more patient and selective with entry. More back-testing and reading required.
2) Fundamental Analysis
I cannot be lazy and just rely on technical analysis to become a great trader. Therefore, I will need to educate myself more on the fundamental side of things.
3) More Charting
Keep doing more chart analysis and reflecting on what I need to work on or change.
Any feedback or tips are appreciated.
I can see that prices are currently near a key monthly level of around 0.65500. The pair has been in a heavy downtrend however price have previously reversed when reaching the 0.65500 level. There was a bullish pin bar candle when prices reached the 0.65500 level which could potentially indicate a reversal. I would not be surprised if prices re-test the support level before making it's next move, whether it's a reversal or a continuation of the downtrend.
I have set a buy stop order for an entry at the 0.65500 level (key monthly level). Ideally, I would like to see a bullish engulfing candlestick pattern for an entry.
Two take profit levels are as follows:
TP1: 0.69000 (Key Daily Level)
TP2: 0.71500 (Key Weekly level)
Another early TP level could be around the 0.67000 area, possibly set as a trailing stop once prices reach TP1.
I've set the Stop loss at 0.64500 which is 100 pips below the key monthly level (0.65500).
Alternative Scenario:
Prices may break this key monthly level and continue to fall further. If entry does not occur and prices continue to move down, wait until prices find a stable support level before re-evaluating. Fundamentally, there has been concerns regards the Australian economy which may continue to weaken the AUD over the long term.
What to work on:
1) Better Entry/Tighter Stop Loss
Understand how I can get a better entry as I feel 100 pips is quite a big distance from my entry price. Maybe it is something I can look for in the lower time frames (H1 & H4) or maybe be more patient and selective with entry. More back-testing and reading required.
2) Fundamental Analysis
I cannot be lazy and just rely on technical analysis to become a great trader. Therefore, I will need to educate myself more on the fundamental side of things.
3) More Charting
Keep doing more chart analysis and reflecting on what I need to work on or change.
Any feedback or tips are appreciated.