Hi Traders! EURAUD short term forecast and technical analysis is 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.
EURAUD D1(Daily) Chart Analysis – Range, Parabolic Sar, ADX Indicator
On the daily chart the price was moving inside a range, this range is formed by the highs and lows reaching parallel resistance and support zones. The price which was respecting this range so far has currently has broken above the top of it, which we may consider as evidence of bullish pressure. Also based on the Parabolic Sar we could see that the dots are below the price which we may consider as another evidence of bullish pressure. In addition to this, the ADX indicator gave a bullish signal 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 another evidence of bullish pressure. Also currently there are no signs opposing this bullish view. We may now move down to lower timeframe and look for evidences supporting this bullish view.
EURAUD H4(4 Hours) Chart Analysis – Heikin Ashi Candles, Bullish Trend Pattern, ADX Indicator, Stochastic Oscillator, Strong Support Zone
On the H4 chart, based on the Heikin Ashi candles we can see that currently, we have strong bullish bodies in upward moving market conditions so it basically reflects a bullish environment.
Also the price which is moving higher has created a bullish trend pattern in the form of three higher highs, higher lows, we may consider this as evidence of bullish pressure. Generally, after a bullish trend pattern, we may expect corrections and then potential continuation higher. Currently, it looks like a correction is happening, also based on the Parabolic Sar we could see that the dots are below the price here as well which we may consider as another evidence of bullish pressure. 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 another evidence of bullish pressure. Also based on the Stochastic Oscillator we could see that the price has reached its extreme which we may consider as yet another evidence of bullish pressure. Until the strong support zone shown in the image below holds my view remains bullish here and I expect the price to move higher further in the short term.
Technical Analysis & Forecast Summary
EURAUD D1(Daily) Chart Analysis
- Range, Parabolic Sar, ADX Indicator
EURAUD H4(4 Hours) Chart Analysis
- Heikin Ashi Candles, Bullish Trend Pattern, ADX Indicator, Stochastic Oscillator, Strong Support Zone
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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To your success,
Vladimir Ribakov
Certified Financial Technician
