Hi Traders! Today I am sharing with you my AUDCAD short term forecast and technical analysis post. We do our analysis on the MetaTrader4 platform (MT4). Some very interesting, useful tips and hacks about the MT4 platform could be found here. If you would like to learn more about the way we trade and the technical analysis we use then check out the Home Trader Club Spoiler alert – free memberships are available
AUDCAD H4(4 Hours) Chart Analysis – Bullish Trend Pattern, Bullish Hidden Divergence, RSI Indicator, Two Strong Support Zones
On the H4 chart, the price 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. In addition to this, the price which is currently moving lower has created a bullish hidden divergence that has formed between the first low that has formed at 0.88091 and the second low that has formed at 0.88950, followed by a continuing bullish divergence between the first low that has formed at 0.88950 and the second low that has formed at 0.88568 based on the MACD indicator we may consider this as another evidence of bullish pressure. In addition to this, we have the most recent downtrend line breakout based on the RSI indicator, which is yet another evidence of bullish pressure. Also, we had two strong resistance zones that has formed and the price which was moving higher has broken above these zones and is holding above them. After the breakout these strong resistance zones are acting as two strong support zones for us. Until both these strong support zones shown in the image below (marked in green) holds my short term view remains bullish here and I expect the price to move higher further.
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 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.
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Arvinth Akash
Home Trader Club Team
