AUDJPY: Breakdown
We are looking at the AUD VS JPY. Lets start with the geopolitical events occurring in Australia at the moment. The fire season has truly been a tragedy this year. With things coming to an end a lot of pessimism is expected to follow through, which will most likely cause the overall bearish sentiment to rise in the AUD economy.
In this chart you see a failing bullish cypher in which price broke the initial D point retracement of 76%. This removes the bullish bias and leads to further analysis.
Price action went on to break all of its previous structure and took out the initial support, and is now facing a minor pullback in the major swing of the broken cypher CD leg.
Price began to rally up after breaking the XA leg, and is currently facing resistance at 71% CD retracements which sets up the potential AB=CD pattern with a potential H&S pattern as confluence. Other confirmations could be the 89% XA retracement confluence or a tweezer top pattern.
According to Scott Carney, a 70.7% AB retracement should equal an 141% BC projection, thus creating the AB=CD.
A 79% retracement should equal 127% BC projections
89% retracements should equal 113 BC projections
This is invaluable information, but does need confirmation. Assuming that price will form an ab=cd pattern is wrong and plain delusional. Confluence such as price action, structure or fibonacci is required.
Looking at a potential profit target of 250 pips.
I'll keep this chart updated!
Please make sure to leave a like and dont forget to comment with any ideas below!
Thank you for reading
God bless
In this chart you see a failing bullish cypher in which price broke the initial D point retracement of 76%. This removes the bullish bias and leads to further analysis.
Price action went on to break all of its previous structure and took out the initial support, and is now facing a minor pullback in the major swing of the broken cypher CD leg.
Price began to rally up after breaking the XA leg, and is currently facing resistance at 71% CD retracements which sets up the potential AB=CD pattern with a potential H&S pattern as confluence. Other confirmations could be the 89% XA retracement confluence or a tweezer top pattern.
According to Scott Carney, a 70.7% AB retracement should equal an 141% BC projection, thus creating the AB=CD.
A 79% retracement should equal 127% BC projections
89% retracements should equal 113 BC projections
This is invaluable information, but does need confirmation. Assuming that price will form an ab=cd pattern is wrong and plain delusional. Confluence such as price action, structure or fibonacci is required.
Looking at a potential profit target of 250 pips.
I'll keep this chart updated!
Please make sure to leave a like and dont forget to comment with any ideas below!
Thank you for reading
God bless
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