The provided chart displays the price action for the Australian Dollar / Canadian Dollar (AUD/CAD) on the 4-hour timeframe from the FXCM platform, dated June 14, 2024. Here’s a detailed analysis based on the chart:
**Chart Analysis**
1. **Trend and Price Structure:**
- The chart shows a general uptrend characterized by a series of Higher Highs (HH) and Higher Lows (HL).
- The most recent price action indicates a potential reversal or a pullback from the latest Higher High (HH).
2. **Demand Zone:**
- There is a marked demand zone around the 0.9080 - 0.9095 range. This zone has acted as a support level previously and is expected to provide buying pressure.
- The price is currently hovering around this demand zone, suggesting it might act as a support again.
3. **Key Levels:**
- **Higher Highs (HH):** Marked around the 0.9160 level, indicating the recent peaks.
- **Higher Lows (HL):** Indicated at different points, showing the levels where the price has retraced before continuing the uptrend.
4. **Potential Price Movement:**
- The price is testing the demand zone, and there are two potential scenarios:
1. **Rebound:** If the demand zone holds, the price might rebound, creating another HL before attempting to reach new HH.
2. **Breakdown:** If the demand zone fails to hold, the price might drop further, indicating a potential trend reversal or deeper correction.
5. **Candlestick Patterns:**
- The current candlesticks near the demand zone should be watched closely. Bullish reversal patterns (like a bullish engulfing or hammer) might indicate a strong rebound.
**Conclusion and Trading Plan:**
- **Bullish Bias:** Given the overall uptrend and the presence of the demand zone, there is a bullish bias if the price respects the demand zone.
- **Buy Signal:** Traders might look for buying opportunities around the current price level (0.9090), especially if there are bullish reversal candlestick patterns.
- **Target Levels:**
- **First Target:** Near the recent HH at 0.9160.
- **Second Target:** Beyond 0.9160, aiming for new highs if the uptrend continues.
- **Stop Loss:** A prudent stop loss would be just below the demand zone, around 0.9070, to manage risk in case of a breakdown.
**Risk Management:**
- **Entry Point:** Around the current price level (0.9090) or after confirmation of a rebound from the demand zone.
- **Target:** The recent HH (0.9160) and potentially higher.
- **Stop Loss:** Below 0.9070 to manage risk effectively.
This analysis is based on the visual information provided by the chart. For a more comprehensive trading strategy, consider integrating other technical indicators (like RSI, MACD) and keeping an eye on fundamental factors affecting AUD and CAD.
**Chart Analysis**
1. **Trend and Price Structure:**
- The chart shows a general uptrend characterized by a series of Higher Highs (HH) and Higher Lows (HL).
- The most recent price action indicates a potential reversal or a pullback from the latest Higher High (HH).
2. **Demand Zone:**
- There is a marked demand zone around the 0.9080 - 0.9095 range. This zone has acted as a support level previously and is expected to provide buying pressure.
- The price is currently hovering around this demand zone, suggesting it might act as a support again.
3. **Key Levels:**
- **Higher Highs (HH):** Marked around the 0.9160 level, indicating the recent peaks.
- **Higher Lows (HL):** Indicated at different points, showing the levels where the price has retraced before continuing the uptrend.
4. **Potential Price Movement:**
- The price is testing the demand zone, and there are two potential scenarios:
1. **Rebound:** If the demand zone holds, the price might rebound, creating another HL before attempting to reach new HH.
2. **Breakdown:** If the demand zone fails to hold, the price might drop further, indicating a potential trend reversal or deeper correction.
5. **Candlestick Patterns:**
- The current candlesticks near the demand zone should be watched closely. Bullish reversal patterns (like a bullish engulfing or hammer) might indicate a strong rebound.
**Conclusion and Trading Plan:**
- **Bullish Bias:** Given the overall uptrend and the presence of the demand zone, there is a bullish bias if the price respects the demand zone.
- **Buy Signal:** Traders might look for buying opportunities around the current price level (0.9090), especially if there are bullish reversal candlestick patterns.
- **Target Levels:**
- **First Target:** Near the recent HH at 0.9160.
- **Second Target:** Beyond 0.9160, aiming for new highs if the uptrend continues.
- **Stop Loss:** A prudent stop loss would be just below the demand zone, around 0.9070, to manage risk in case of a breakdown.
**Risk Management:**
- **Entry Point:** Around the current price level (0.9090) or after confirmation of a rebound from the demand zone.
- **Target:** The recent HH (0.9160) and potentially higher.
- **Stop Loss:** Below 0.9070 to manage risk effectively.
This analysis is based on the visual information provided by the chart. For a more comprehensive trading strategy, consider integrating other technical indicators (like RSI, MACD) and keeping an eye on fundamental factors affecting AUD and CAD.
Trade closed: target reached
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.