AUD CAD - Long imbalances

Hello Traders and Analysts,

Breakdown:
1. Note
2. Contents
3. Research breakdown
4. Education recap
5. Information on Lupa.

A Note before reading - this is a forecast analysis - based upon our trading strategy. This is tagged short, due to purchasing further increments upon imbalances.
Please do not take this as face value and conduct the relevant investment strategy to successfully trade the probabilities.

Master Key for zones
  • Red = Three Month
  • Blue = Monthly
  • Purple = weekly
  • Scarlet [Red] - Four day
  • Orange = Daily
  • Green = 8 Hour, 16hour
  • Grey = 4hour
  • Pink = 1 hour


Monthly Imbalances
Price has rejected the previous yearly lows of AUD CAD at 0.55 to a $1.00
This zone is a powerful buying zone for positional holders like us for two reasons;
1. - Price reacted to the level -0.786 Fibonacci Extension, which aligns from the
2. - The wicks are closing bullish - suggesting the zone is a fractal buying imbalance for buyers.
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Weekly Imbalance
The weekly imbalances are shown and provide a clear indicator where 0.91 was a great opportunity with a key wick where price closed at the same price - objectively closing out the
The weekly imbalances once the short has initiated shows the lows to monitor at the next imbalance where price will offer two key scenarios;
1. - The probability of the rally, base, rally continuation [bearish].
2. - The probability of a rally, bounce, rally where price will offer an opportunity to buy.
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Weekly Pathway
The weekly pathway offers a solid opportunity to buy from the imbalance - whereby price has corrected and now formed bullish candles justifying a break of structure.
Do not rule out a retest of this zone, before entering a second position* The probability offers a strong area of a change of hands from buyers and sellers - hence why this is a reactive zone upon the completion of the Fibonacci sequence.
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Fibonacci Pattern is completed on the daily
Very simply taking the high to the low application of structure, price targets end up in a completion pattern which correlates to a weekly, monthly structure where price will pivot and create a "demand" or "supply" (however this case it is a buying demand). This is known as the true value of an imbalance where short sellers are now discounting the price to the reversion point for buyers to enter at a discount factor.
Based on the high reversion probability - entering a buy based upon confirmation where imbalances "net off" the structure can offer applications of buying power.
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Refer to the Chart of USDCAD or AUD USD for references - both showing discount factors.

USD CAD weekly chart
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AUD USD correction upon the weekly chart
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Volume indication
Volume profile from the previous structure to the current structure
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Current position:
View comments for updates, new additions
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AUDCADAUDUSDEconomic CyclesFibonacciFibonacci ExtensionimbalanceslupacapitallupacapitalpartnersSupply and DemandTechnical Analysis

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