Hi Traders! USDILS forecast update and follow up is here. On May 27th I shared this “USDILS Forecast And Technical Analysis ” post in our blog. In this post, let’s do a recap of this setup and see how it has developed now. 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!
My Idea
On the H4 chart we have a bullish divergence that has formed between the first low that has formed on 17th May 2021 and the second low that has formed on 26th May 2021 based on the MACD indicator we may consider this as 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 here as well. So everything looks good here for the bulls and until the bottom of the daily range holds my view remains bullish here and I expect the price to move higher further.
USDILS H1(1 Hour) Chart Current Scenario
Based on the above-mentioned analysis my view was bullish here and I was expecting the price to move higher further until the bottom of the daily range holds. The price action followed my analysis here exactly as I expected it to. The price respected the bottom of the range and bounced higher from this zone, delivering 200+ pips move so far!
On the M15 chart, the market provided us with various facts supporting the bullish view. The price which was moving lower created a bullish divergence between the first low that has formed at 3.23822 and the second low that has formed at 3.23771 based on the MACD indicator. The price then moved higher and broke above the most recent downtrend line, we may consider these as facts provided by the market supporting the bullish view. Then as you can see in the image below how the price moved higher after that.
(Note: You can learn about a Killer Forex Strategy “Double Trend Line Principle” here)
As traders we always have two choices, the first one is to fall in love with our analysis and try to convince the market and expect the price to move in the direction as per our wish. The second one is to follow the facts that the market provides us and make the right actions according to that. As you know the first option won’t help us and as you can see in the example above what happened when we followed the facts that the market hinted us and took the right action according to that.
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Happy Trading!
Yordan Kuzmanov
Chief Trader at the Traders Academy Club
