7 Dimension Analysis For AUDNZD 🕛 TOPDOWN - Navigating a Bullish Market with Long-Term Potential
Overview: This pair has been consolidating for about a decade, showcasing substantial volume in the yearly chart. Despite the extended consolidation, heavy volume indicates significant player involvement, suggesting an expected upside move. The monthly trend is establishing itself for a prolonged bullish trajectory, currently forming a base accumulation zone. The weekly chart shows a triangle formation, and a breakout will be pivotal for determining the broader trend. All signs currently point towards a bullish bias, making this pair attractive for both short and long-term positions.
😇 7 Dimension Analysis
Time Frame: Daily
1️⃣ Swing Structure: Bullish to sideways with Bull-side potential
🟢 Structure Behavior: ChOch and Point of Interest (POI) already mitigated with liquidity sweep.
🟢 Swing Move: Initial Impulsive
🟢 Inducement: Completed for the bull side, establishing a valid low.
🟢 1st Pull Back: Made a 50% correction with an Inside Bar candle, validating the pullback. Internal structure appears bullish to sideways with mitigated oversold conditions.
🟢 Demand/Accumulation Areas: Respected by the price. Trendlines are marked, awaiting a breakout.
2️⃣ Pattern
🟢 CHART PATTERNS
No specific chart patterns identified in the current leg.
🟢 CANDLE PATTERNS
Key Observations:
Change in guard with an engulfing candle at the demand area, signaling potential sideways movement.
Multiple instances of long wicks at the demand area, indicating bullish sentiment.
Momentum candles exhibit substantial size, signaling significant bullish momentum.
Various bullish candlestick patterns, including kicker sash, inside candles, and open lows, reinforce the bullish sentiment.
3️⃣ Volume: Significant buy volumes at the demand area, suggesting strong bullish control. Positive insights from volume during corrections.
4️⃣ Momentum RSI:
🟢 Momentum State: In a full sideways zone. Momentum shifted rapidly from super bearish to super bullish, indicating a substantial change in momentum. Bullish divergence supports the bullish outlook.
5️⃣ Volatility Bollinger Bands:
🟢 Prices play around the middle band, anticipating a significant move. Squeeze has begun, indicating a potential volatility compression. A breakout outside the upper band is expected.
6️⃣ Strength - ROC Values: Almost equal strength at the current point.
✔️ Entry Time Frame: Daily
✅ Entry TF Structure: Sideways to bullish
☑️ Current Move: Bullish impulsive
✔ Support Base: 20 MA
☑️ Candles Behavior: Major bullish candlestick patterns have formed.
☑️ Trend Line Breakout: Awaiting confirmation.
☑️ Final Comments: Enter for a long position once the price breaks the upper trend line.
💡 Decision: Go for a long position.
🚀 Entry: 1.0900
✋ Stop Loss: 1.0750
🎯 Take Profit: 1.1426
2nd Exit if Internal Structure Changes, 3rd Trendline Breakout, FOMO.
😊 Risk to Reward Ratio: 1:3.5
🕛 Expected Duration: 30 days
SUMMARY: The analysis maintains a bullish perspective, emphasizing potential long-term opportunities. The strategy involves entering a long position upon the breakout of the upper trendline, aligning with the broader bullish outlook. Considerations include the diverse bullish candlestick patterns and the anticipation of a significant move as signaled by the Bollinger Bands' squeeze.
