Hi Traders! AUDCAD forecast and technical analysis post 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.
AUDCAD D1(Daily) Chart Analysis – Bullish Trend Pattern, Strong Support Zone, Bullish Divergence, Parabolic Sar
On the daily chart, the price which was 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 and the price which is moving lower has reached a strong support zone and is holding in this zone. Also, we have a bullish divergence that has formed between the first low that has formed at 0.92605 and the second low that has formed at 0.91033 based on the MACD indicator, we may consider this as evidence of bullish pressure. In addition to this, based on the Parabolic Sar we could see that the dot is below the price which we may consider as yet another evidence of bullish pressure. We may now move down to lower timeframe and see if we can find evidences supporting this bullish view.
AUDCAD H4(4 Hours) Chart Analysis – Key Support Zone, Bullish Divergence, ADX Indicator, Parabolic Sar
On the H4 chart, we have a key support zone that has formed based on the 161.8% Fibonacci expansion level of the first wave and the 61.8% Fibonacci expansion level of the second wave. The price which was moving lower, reached this zone, respected it and is bouncing higher from this zone. In addition to this, we have a bullish divergence that has formed between the first low that has formed at 0.91708 and the second low that has formed at 0.91033 based on the MACD indicator, we may consider this as evidence of bullish pressure. Also, 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 another evidence of bullish pressure. In addition to this, based on the Parabolic Sar the dots are below the price here as well, which we may consider as yet another evidence of bullish pressure. Until the key support zone holds my view remains bullish here. If we get a valid breakout above the high at 0.92097 we may then consider it as a validation for the bullish view and may expect the price to move higher further.
Technical Analysis & Forecast Summary
AUDCAD D1(Daily) Chart Analysis
- Bullish Trend Pattern, Strong Support Zone, Bullish Divergence, Parabolic Sar
AUDCAD H4(4 Hours) Chart Analysis
- Key Support Zone, Bullish Divergence, ADX Indicator, Parabolic Sar
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
