The first observation on this chart is the Descending channel drawn by connecting the lower highs and lower lows of price action with parallel trendlines emphasize the prevailing trend that began in October 2020... It appears the price is willing to respect this channel in the coming week as a Breakdown of AU$1.545000 level followed by rejection is a clue supporting a Bearish bias.
Tendency: Downtrend ( Bearish )
Structure: Breakdown | Supply & Demand | Harmonic pattern (AB = CD) | Descending Channel
Observation: i. In the last 21days, the AU$1.54500 level has been a major determinant of the direction of price action.
ii. A breakdown of AU$1.54500 on the 10th of March 2021 followed by a continuous rejection of this level in the last 9 days is a clue that structure might transpose into a harmonic (AB = CD) pattern (see parameters below) in the coming week(s).
a. Leg A-to-B is expected to be in harmony with the potential C-to-D leg.
b. The B- to-C leg makes a 61.8% Fibonacci retracement of the A-to-B leg.
c. The C-to-D leg is expected to fall within 127.2 - 1.414% Fib. ext. of the A-to-B move @ AU$1.50000 area.
iii. In the coming week, I shall make the level @ AU$1.54500 a yardstick for downtrend continuation.
iv. Pleased note that a significant Breakout of the Channel shall render this setup invalid.
Trading plan: SELL confirmation with a minimum potential profit of 400pips.
Risk/Reward: 1:4
Potential Duration: 7 to 15 days
NB: This speculation might be considered to make individual decisions on the lower timeframe.
Watch this space for updates as price action is been monitored.
Risk Disclaimer:
Margin trading in the foreign exchange market (including foreign exchange trading, CFDs, etc.) has a high risk and is not suitable for all investors. The content of this speculation (including all data) is organized and published by me for the sole purpose of education and assistance in making independent investment decisions. All information herein is for your reference only and I take no responsibility.
You are hereby advised to carefully consider your investment experience, financial situation, investment objective, risk tolerance level, and consult your independent financial adviser as to the suitability of your situation prior to making any investment.
I do not guarantee its accuracy and is not liable for any loss or damage which may result directly or indirectly from such content or the receipt of any instruction or notification therewith.
Past performance is not necessarily indicative of future results.
Tendency: Downtrend ( Bearish )
Structure: Breakdown | Supply & Demand | Harmonic pattern (AB = CD) | Descending Channel
Observation: i. In the last 21days, the AU$1.54500 level has been a major determinant of the direction of price action.
ii. A breakdown of AU$1.54500 on the 10th of March 2021 followed by a continuous rejection of this level in the last 9 days is a clue that structure might transpose into a harmonic (AB = CD) pattern (see parameters below) in the coming week(s).
a. Leg A-to-B is expected to be in harmony with the potential C-to-D leg.
b. The B- to-C leg makes a 61.8% Fibonacci retracement of the A-to-B leg.
c. The C-to-D leg is expected to fall within 127.2 - 1.414% Fib. ext. of the A-to-B move @ AU$1.50000 area.
iii. In the coming week, I shall make the level @ AU$1.54500 a yardstick for downtrend continuation.
iv. Pleased note that a significant Breakout of the Channel shall render this setup invalid.
Trading plan: SELL confirmation with a minimum potential profit of 400pips.
Risk/Reward: 1:4
Potential Duration: 7 to 15 days
NB: This speculation might be considered to make individual decisions on the lower timeframe.
Watch this space for updates as price action is been monitored.
Risk Disclaimer:
Margin trading in the foreign exchange market (including foreign exchange trading, CFDs, etc.) has a high risk and is not suitable for all investors. The content of this speculation (including all data) is organized and published by me for the sole purpose of education and assistance in making independent investment decisions. All information herein is for your reference only and I take no responsibility.
You are hereby advised to carefully consider your investment experience, financial situation, investment objective, risk tolerance level, and consult your independent financial adviser as to the suitability of your situation prior to making any investment.
I do not guarantee its accuracy and is not liable for any loss or damage which may result directly or indirectly from such content or the receipt of any instruction or notification therewith.
Past performance is not necessarily indicative of future results.
Trade smart. Trade consciously
