Hi Traders! We have AUDCHF bullish setup forming at the moment. A detailed analysis of this buy opportunity is as follows:
AUDCHF D1 Chart:
On the daily chart the price is moving inside a range, this range is formed by the highs and lows reaching similar resistance and support zones. The price which is respecting these two zones so far has currently reached the bottom of this range. If we didn’t get a valid breakout below the bottom of the range, we may then expect the price to respect it and move higher again. In addition to this we also have potential bullish divergence that is forming at the moment.
AUDCHF H4 Chart:
On the H4 chart we have a critical zone that has formed based on the fibo level of the cycle and the bottom of the daily range. Currently the price has reached this zone and in addition to this we also have a bullish divergence that has formed which we may consider as an evidence of bullish pressure. Until the critical zone holds, we may expect to see bullish moves. If the price moves higher and breaks above the downtrend line then it would be the first sign of bullish reversal, more conservative options require a break above a significant high.
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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