Hi Traders! AUDUSD forecast and technical analysis 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. The way I would like to analyze the chart for setups is based on multi-timeframe confirmations because in my POV if we get more evidences on different timeframes for the same direction then it makes the setup much more reliable. 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! Let’s start our analysis from the highest timeframe which will be the daily chart here.
AUDUSD D1(Daily) Chart Analysis – Key Support Zone, Bullish Divergence, ADX Indicator
On the daily chart, we have a key support zone that has formed based on the 61.8%(0.67686) Fibonacci expansion level of the first wave. The price which was moving lower, reached this key support zone, respected it and is currently bouncing higher from this zone. Also, we have a bullish divergence that has formed between the first low that has formed at 0.68288 and the second low that has formed at 0.66812 based on the MACD indicator which we may consider as 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. We may now move down to lower timeframe and look for evidences supporting this bullish view.
AUDUSD H4(4 Hours) Chart Analysis – Bullish Convergence, ADX Indicator
Looking at the H4 chart, we could see that the price which was moving lower created a bullish divergence that has formed between the first low that has formed at 0.67106 and the second low that has formed at 0.66812 based on the MACD indicator. The price then moved higher and broke above the last high at 0.68030 creating higher highs, thus forming a classical setup of bullish divergence followed by bullish convergence, we may consider these as evidences of bullish pressure. Hence as per the book scenario, after a bullish convergence, we may look for corrections to happen and then further continuation to the upside. In addition to this, the ADX indicator gave a bullish signal here as well, 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. Also, currently there are no signs opposing this bullish view. Until the key support zone shown in the image below (marked in blue) holds my view remains bullish here and I expect the price to move higher further after pullbacks.
Technical Analysis & Forecast Summary
AUDUSD D1(Daily) Chart Analysis
- Key Support Zone, Bullish Divergence, ADX Indicator
AUDUSD H4(4 Hours) Chart Analysis
- Bullish Convergence, ADX Indicator
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 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.
Also, don’t forget to protect your buy trade using a stop loss and make sure to set a target and keep a proper risk/reward ratio.
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Happy Trading!
Arvinth Akash
Traders Academy Club Team
