Hi Traders! AUDNZD short term forecast and technical analysis post is here. We do our analysis on the MetaTrader4 platform (MT4), some very interesting, useful tips and hacks about the MT4 platform could be found here. If you would like to learn more about the way we trade and the technical analysis we use then check out the Traders Academy Club Spoiler alert – free memberships are available!
AUDNZD H4(4 Hours) Chart Analysis – Bullish Convergence, Downtrend Line Breakout, ADX Indicator
On the H4 chart, the price which was moving lower has created a bullish divergence that has formed between the first low that has formed at 1.09546 and the second low that has formed at 1.09523 based on the MACD indicator. The price then moved higher and broke above the last high at 1.10505 creating higher highs, thus forming a classical setup of bullish divergence followed by bullish convergence. We may consider this as evidence of bullish pressure. Also, the price which is moving higher has broken above the most recent downtrend line which we may consider as another evidence of bullish pressure. In addition to this, the ADX indicator gave a bullish signal here at the cross of +DI (green line) versus -DI (red line) and the main signal line (silver line) reads value over 25, we may consider this as yet another evidence of bullish pressure. So everything looks good here for the bulls and until the strong support zone (marked in blue) shown in the image below holds my short term view remains bullish here and I expect the price to move higher further.
(Note: You can learn about a Killer Forex Strategy “Double Trend Line Principle” here)
Trading Tips
It is always recommended to look for confirmations before you jump into any trade. If you are not sure about how to trade this short term 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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Arvinth Akash
Traders Academy Club Team
