AUD/CHF 4H Timeframe AnalysisAUD/CHF 4H Timeframe Analysis
Trend Analysis:
On the 4-hour timeframe, AUD/CHF remains in a downtrend, with price initially retesting the minor key support at 0.55900 before moving upward and breaking the minor key resistance at 0.56600. Following this move, price entered a consolidation phase, likely accumulating buyer orders.
However, a break below the minor resistance signaled a manipulation stage or liquidity grab, targeting stop-loss orders. Sellers maintained control, pushing the price further down and eventually breaking through the minor key support.
During the breakout, we observed seller accumulation around this level, indicated by increased volume. Yet, the price rebounded, liquidating stop-loss orders placed by sellers.
Price Action Expectation:
With liquidity already formed, the next step is to wait for the price to break below the minor key support again, confirming bearish momentum:
Entry Plan:
Place a sell stop order at 0.55800 to confirm entry upon breakout.
Stop Loss: Set at 0.56200, above the liquidity zone for effective risk management.
Take Profit: Target the support at 0.54600, providing a 1:3 risk-to-reward ratio.
Key Levels to Monitor:
Support Zone: 0.55900
Resistance Zone: 0.56600
Additional Considerations:
Watch for bearish candlestick formations and increased volume as confirmation of the breakout.
Monitor for potential fakeouts or retracements before the price resumes its downward move.
Conclusion:
AUD/CHF exhibits strong bearish potential as the price approaches the minor support level at 0.55900. A confirmed break below 0.55800 would signal the continuation of the downtrend, targeting 0.54600 for a favorable 1:3 risk-to-reward ratio. Stay vigilant for market manipulations or liquidity grabs before executing the trade.
