Hi Traders! AUDCAD critical zone provides buy opportunity for us. A detailed analysis of this bullish setup is as follows:
AUDCAD D1 Chart:
On the daily chart we have a triple cycle down and the price which is moving lower has currently reached a critical zone which is formed by the fibo levels of the cycles. In addition to this we also have a potential bullish divergence that is forming at the moment. We may now start looking for buy setups with bullish evidences on lower timeframes in order to join the bulls.
AUDCAD H1 Chart:
On the H1 chart we have a triple cycle down and the price which is moving lower has currently reached a critical zone which is formed by the fibo levels of the cycles and is currently moving higher. if the price moves higher further and breaks above the high shown in the screenshot we may then look for pullbacks and buys with more bullish evidences.
Invalidation: This buy setup is valid until the low shown in the screenshot holds. If the price moves lower and breaks below this low then this buy setup will be invalidated.
Note: It is always recommended to look for confirmations before you jump into any trade. If you are not sure about how to trade this buy setup then you can use any setup and strategy that you have in your arsenal to look for bullish moves and join this buy trade.
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