AUDCAD Short Term Forecast Update And Follow Up

0
30
AUDCAD Short Term Forecast Update And Follow Up

Hi Traders! AUDCAD short term forecast update and follow up is here. On March 19th 2024 I shared this “AUDCAD Short Term 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  Home Trader ClubSpoiler alert – free memberships are available!

My Idea

On the H1 chart, based on the Heikin Ashi candles we can see that currently, we have strong bearish bodies in downward-moving market conditions so it basically reflects a bearish environment. In addition to this, the price which is moving lower has created a bearish trend pattern in the form of three lower highs, and lower lows which we may consider as evidence of bearish pressure. Generally, after a bearish trend pattern, we may expect corrections and then a further continuation lower. Also, the price which is moving lower has created lower lows based on the MACD indicator, which is another sign of gaining momentum toward the bearish side. In addition to this, the ADX indicator gave a bearish signal here at the cross of -DI (red line) versus +DI (green line) and the main signal line (silver line) reads a value over 25 which we may consider as yet another evidence of bearish pressure. So everything looks good here for the bears and until this strong resistance zone (marked in red) shown in the image below holds my short term view remains bearish here and I expect the price to move lower further after pullbacks.

 

AUDCAD Short Term Forecast Update And Follow Up

 

 

AUDCAD H1(1 Hour) Chart Current Scenario

In AUDCAD my short-term view was bearish here based on the above-mentioned analysis and I was expecting the price to move lower further until the strong resistance zone holds. After the bearish trend pattern, the pullback that I was looking for happened and then the price moved lower further and delivered an excellent move to the downside as you can see in the image below!

 

AUDCAD Short Term Forecast Update And Follow Up

 

On the M30 chart, the market provided us with various facts supporting the bearish view. The price which was moving higher created a bearish divergence between the first high formed at 0.88900 and the second high which formed at 0.88971 based on the MACD indicator. The price then moved lower and broke below the most recent uptrend line. We may consider these as facts provided by the market supporting the bearish view and also there we no signs opposing this bearish view. Then as you can see in the image below how the price moved lower further after that and provided an excellent move to the downside!

 

AUDCAD Short Term Forecast Update And Follow Up

 

So, traders, this is why I wanted to show this example to help you understand how important it is to follow the facts. The facts were supporting the bearish view here and there were no signs against it. When the facts do happen as we expected you can see how the price perfectly moved as per the plan. Because these are the kind of hints the market provides us at the majority of the time and it’s our obligation as traders to be able to listen to these things that the market tells us and we should try to make the right actions accordingly.

For similar trade ideas and much more I invite you to

JOIN HOME TRADER CLUB NOW

Also, you can get one of our strategies free of charge. You will find all the details here

 

Download our best forex indicators here

 

If you have any further questions, don’t hesitate to drop a comment below!

 

Happy Trading!

Arvinth Akash
Home Trader Club Team.

Click To Join Our Community Telegram Group

Subscribe
Notify of
guest

0 Comments
Inline Feedbacks
View all comments