AUDCAD - Bullish Cypher
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Looking forward to a new week, I have added the AUD/CAD to my watchlist- keeping my eye on a bullish cypher pattern on the 4 hour chart. If you scroll back on this timeframe you can see our PRZ has landed in an area where there is a history of price consolidating as support or resistance, as well as times where price has quickly reversed. Keeping this in mind, I expect to see some nice price action should price reach this level.
As always I will be analysing the candles for signs of reversal- hammers, engulfing candle, you know how it goes...
With this pattern our first Take-Profit level will fall exactly on 0.98, with our final target for 0.98784. With any pattern, risk to reward should be at least 1:2. In this instance we are doing just that as our stop-loss should be below the point of X. This may vary for people depending on when they enter. The stop-loss and profit targets should ever move, so if you enter slightly lower than the PRZ you would see a small difference.
Cypher ratios
B = 0.382-0.618
C = 1.272-1.414
X to D = 0.786
*To anyone drawing this pattern, please remember to use the Cypher tool- NOT the XABCD tool as normal for other harmonic formations*
I am currently short the AUDJPY, so I do expect some further weakness from the AUD (see below). I'll update further once price has reached our PRZ.
Have a good week guys!
As always I will be analysing the candles for signs of reversal- hammers, engulfing candle, you know how it goes...
With this pattern our first Take-Profit level will fall exactly on 0.98, with our final target for 0.98784. With any pattern, risk to reward should be at least 1:2. In this instance we are doing just that as our stop-loss should be below the point of X. This may vary for people depending on when they enter. The stop-loss and profit targets should ever move, so if you enter slightly lower than the PRZ you would see a small difference.
Cypher ratios
B = 0.382-0.618
C = 1.272-1.414
X to D = 0.786
*To anyone drawing this pattern, please remember to use the Cypher tool- NOT the XABCD tool as normal for other harmonic formations*
I am currently short the AUDJPY, so I do expect some further weakness from the AUD (see below). I'll update further once price has reached our PRZ.
Have a good week guys!
Note
The channel has been broken, and the supporting trendline has been re-tested. Should price drop to support, this will be a good buying opportunity at our PRZ!
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