AUDCAD Bearish Harmonic Pattern - Strategic Trade Setup
The AUDCAD pair is currently exhibiting a Bearish Harmonic Pattern (XABCD), with Point D anticipated to act as a Potential Reversal Zone (PRZ). This analysis aims to identify strategic entry and exit points based on the confluence of multiple technical indicators.
Key Technical Indicators
Potential Reversal Zone (PRZ):
Point D aligns with a significant Key Resistance area, which historically serves as a strong barrier to upward price movement.
4-hour Trend Line:
The trend line, which has acted as a pivotal point in previous market movements, intersects at Point D, reinforcing the likelihood of a reversal.
Bearish RSI Divergence (1-hour):
The Relative Strength Index (RSI) on the 1-hour chart displays a bearish divergence, suggesting weakening bullish momentum and potential for a bearish reversal.
Trade Setup
Entry Point:
A strategic entry is recommended at 0.91113, where the confluence of the aforementioned technical factors indicates a high probability of a trend reversal.
Stop Loss:
To mitigate risk, a stop loss should be placed at 0.91261, slightly above the resistance level to avoid false breakouts.
Take Profit Levels:
TP-1: 0.90964
The first take profit level is set at 0.90964, capturing initial downward momentum and ensuring partial profit realization.
TP-2: 0.90816
The second take profit level at 0.90816 aims to capitalize on further bearish movement, aligning with intermediate support zones.
TP-3: 0.90668
The final take profit target at 0.90668 corresponds to a more significant support level, maximizing potential gains from the bearish trend reversal.
Conclusion:
Based on the technical analysis, the AUDCAD pair presents a compelling bearish setup with multiple converging indicators at Point D. The proposed entry at 0.91113, supported by a precise stop loss and structured take profit levels, offers a well-balanced risk-reward ratio. Traders are advised to monitor price action closely as it approaches the PRZ to confirm bearish momentum before executing the trade.
Key Technical Indicators
Potential Reversal Zone (PRZ):
Point D aligns with a significant Key Resistance area, which historically serves as a strong barrier to upward price movement.
4-hour Trend Line:
The trend line, which has acted as a pivotal point in previous market movements, intersects at Point D, reinforcing the likelihood of a reversal.
Bearish RSI Divergence (1-hour):
The Relative Strength Index (RSI) on the 1-hour chart displays a bearish divergence, suggesting weakening bullish momentum and potential for a bearish reversal.
Trade Setup
Entry Point:
A strategic entry is recommended at 0.91113, where the confluence of the aforementioned technical factors indicates a high probability of a trend reversal.
Stop Loss:
To mitigate risk, a stop loss should be placed at 0.91261, slightly above the resistance level to avoid false breakouts.
Take Profit Levels:
TP-1: 0.90964
The first take profit level is set at 0.90964, capturing initial downward momentum and ensuring partial profit realization.
TP-2: 0.90816
The second take profit level at 0.90816 aims to capitalize on further bearish movement, aligning with intermediate support zones.
TP-3: 0.90668
The final take profit target at 0.90668 corresponds to a more significant support level, maximizing potential gains from the bearish trend reversal.
Conclusion:
Based on the technical analysis, the AUDCAD pair presents a compelling bearish setup with multiple converging indicators at Point D. The proposed entry at 0.91113, supported by a precise stop loss and structured take profit levels, offers a well-balanced risk-reward ratio. Traders are advised to monitor price action closely as it approaches the PRZ to confirm bearish momentum before executing the trade.
أغلقت الصفقة: تم الوصول للهدف
TP-1 & TP-2 Reached.Use Trailing Stop Loss if you are aiming for TP-3
أغلقت الصفقة: تم الوصول للهدف
TP-3 & TP-4 Reached...!
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إخلاء المسؤولية
لا يُقصد بالمعلومات والمنشورات أن تكون، أو تشكل، أي نصيحة مالية أو استثمارية أو تجارية أو أنواع أخرى من النصائح أو التوصيات المقدمة أو المعتمدة من TradingView. اقرأ المزيد في شروط الاستخدام.