Hi Traders! EURAUD technical analysis and short term forecast 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 – Strong Resistance Zone, Parabolic Sar
On the daily chart, we had a strong bullish move and the price which was moving higher reached a strong resistance zone, respected it and bounced lower from this zone. Currently, it looks like a correction is happening. Also, we could see that the price which was moving higher has created higher highs based on the MACD indicator which we may consider as a sign favoring the bulls. So basically, there is a good chance for the price to move higher further after this correction. Also, at the moment there are no signs that shows this correction is over yet. In addition to this, based on the Parabolic Sar we could see that the dots are above the price which we may consider as an evidence favoring the bears. So the bottom line here is that, I expect possible short term bearish moves to happen here. We may now move down to lower timeframe and look for evidences supporting this short term bearish view.
EURAUD H4(4 Hours) Chart Analysis – Key Support Zone
Looking at the H4 chart, currently it looks like the correction is happening in the form of double wave down. We have the first leg down followed by a correction with the price reaching a strong resistance zone, respected it and is currently bouncing lower from this zone. Also, we have a key support zone that has formed by the 61.8%(1.56244) Fibonacci expansion level of the first wave of this correction and the 61.8%(1.56679) Fibonacci retracement level of the big bullish move. The price still has room lower towards this key support zone and in addition to this there are no signs opposing this short term bearish view at the moment. So basically, until the strong resistance zone holds I expect the price to move lower in the short term at least towards the key support zone.
Technical Analysis & Forecast Summary
EURAUD D1(Daily) Chart Analysis
- Strong Resistance Zone, Parabolic Sar
EURAUD H4(4 Hours) Chart Analysis
- Key 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 short term sell setup then you can use any setup and strategy that you have in your arsenal to look for bearish moves and join this sell trade.
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Arvinth Akash
Traders Academy Club Team.
