AUDCHF H2 TF Analysis 💡✍️🧠

The chart showcases a clear bearish market structure, but opportunities arise for a bullish reversal based on price interaction with multiple demand zones. This analysis focuses on key structural elements: MSS (Market Structure Shift), OB (Order Blocks), and FVG (Fair Value Gaps), all of which are valuable in SMC (Smart Money Concepts).

Key Observations

1. Market Structure:
   • MSS (Market Structure Shifts):
     • Two MSS points are marked, indicating short-term bearish shifts.
     • Price respects a downtrend but shows potential for reversal in demand zones.
2. Order Blocks (OB):
   • Daily OB, H4 OB, and M15 OB are stacked in the same area (green zone), signaling a strong confluence for a reversal.
   • Price entered the H4 OB and M15 OB, indicating a potential entry for bullish setups.
3. Fair Value Gap (FVG):
   • An FVG exists before the last bullish impulse, suggesting that price may retrace into this area before continuing upward.
4. Demand Zone:
   • The green box marks a clear demand zone from a higher timeframe perspective. Multiple OBs align here, increasing the likelihood of bullish reactions.

Trade Setup Idea

Long (Buy) Trade Plan:

• Entry: Look for a bullish confirmation within the M15 OB or H4 OB demand zones at the current price level (around 0.56390).
• Stop Loss: Place the stop loss below the Daily OB or the lowest point of the demand zone at approximately 0.56100.
• Target: Aim for a retracement back into the Fair Value Gap (FVG) or higher towards 0.57000 (a potential resistance).

Trade Parameters:

• Risk/Reward Ratio: Targeting 1:3 or better.
• Confluence: Multiple OBs (M15, H4, Daily), demand zone, and potential bullish momentum.

Conclusion

This AUD/CHF H2 analysis highlights a high-probability bullish reversal setup. With price respecting the OB and FVG zones, traders can wait for bullish confirmation to enter long trades. Combining multiple timeframes and OB confluences strengthens the trade idea.

Patience and precision are key for execution. Always ensure proper risk management.