AUD/CAD on the 1-hour timeframe, and here's a detailed analysis based on the current price action and key levels:
🔍 Market Structure & Price Action
The overall trend prior to the recent move is bearish, as shown by the consistent series of lower highs and lower lows.
Price dropped sharply, breaking through previous support levels, and has now tapped into a demand zone (support area) around 0.85500.
After touching this demand zone, bullish rejection wicks appeared, indicating buying interest and potential exhaustion of selling momentum.
🧱 Key Levels
Support Zone (Demand Area):
Around 0.85400 - 0.85600 (shaded in pink at the bottom). This area has held, showing buyers stepping in.
Resistance Zone (Supply Area):
Around 0.88400 - 0.88600 (shaded in pink at the top), which is a previous support turned resistance.
🔁 Possible Scenario (As Indicated by the Chart)
The red arrow shows a potential bullish reversal:
Price might make a small pullback or retest of the demand zone.
If it forms a higher low and confirms bullish intent, a move toward the 0.88400-0.88600 resistance zone is likely.
📈 Bullish Confirmation Needed
To confirm a buy setup, look for:
A break above recent minor resistance (near 0.86200 - 0.86400).
Strong bullish candles or a bullish engulfing pattern.
Potential confluence with indicators (e.g., RSI divergence, EMA crossover, etc.).
🚫 Bearish Risk
If price breaks below the demand zone (0.85400), the bearish trend may continue, invalidating the reversal setup.
In such a case, next support might be much lower, and short opportunities could arise.
✅ Summary
Bias: Potential short-term bullish reversal within a broader bearish trend.
Entry Consideration: After a higher low or bullish confirmation near 0.85600–0.86000.
Target: Resistance zone at 0.88400–0.88600.
Invalidation: Break below 0.85400.
🔍 Market Structure & Price Action
The overall trend prior to the recent move is bearish, as shown by the consistent series of lower highs and lower lows.
Price dropped sharply, breaking through previous support levels, and has now tapped into a demand zone (support area) around 0.85500.
After touching this demand zone, bullish rejection wicks appeared, indicating buying interest and potential exhaustion of selling momentum.
🧱 Key Levels
Support Zone (Demand Area):
Around 0.85400 - 0.85600 (shaded in pink at the bottom). This area has held, showing buyers stepping in.
Resistance Zone (Supply Area):
Around 0.88400 - 0.88600 (shaded in pink at the top), which is a previous support turned resistance.
🔁 Possible Scenario (As Indicated by the Chart)
The red arrow shows a potential bullish reversal:
Price might make a small pullback or retest of the demand zone.
If it forms a higher low and confirms bullish intent, a move toward the 0.88400-0.88600 resistance zone is likely.
📈 Bullish Confirmation Needed
To confirm a buy setup, look for:
A break above recent minor resistance (near 0.86200 - 0.86400).
Strong bullish candles or a bullish engulfing pattern.
Potential confluence with indicators (e.g., RSI divergence, EMA crossover, etc.).
🚫 Bearish Risk
If price breaks below the demand zone (0.85400), the bearish trend may continue, invalidating the reversal setup.
In such a case, next support might be much lower, and short opportunities could arise.
✅ Summary
Bias: Potential short-term bullish reversal within a broader bearish trend.
Entry Consideration: After a higher low or bullish confirmation near 0.85600–0.86000.
Target: Resistance zone at 0.88400–0.88600.
Invalidation: Break below 0.85400.
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.