Hi Traders! AUDCAD short term forecast follow up and update is here. On June 15th 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 Traders Academy Club. Spoiler alert – free memberships are available!

My Idea

Looking at the H1 chart, we could see that the price which was moving lower created a bullish divergence that has formed between the first low that has formed at 0.89089 and the second low that has formed at 0.88830 based on the MACD indicator. The price then moved higher and broke above the last high at 0.89727 creating higher highs, thus forming a classical setup of bullish divergence followed by bullish convergence, we may consider these as evidences of bullish pressure. In addition to this, 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 yet another evidence of bullish pressure. Also, currently there are no signs opposing this short term bullish view. Until the key support zone shown in the image below (marked in blue) holds my short term view remains bullish here and I expect the price to move higher further.

AUDCAD H1(1 Hour) Chart Current Scenario

In this pair, my short term view was bullish and I was expecting the price to move higher further until the key support zone holds. The price action followed my analysis exactly as I expected it to here. After the bullish convergence the price moved higher further as per the plan and delivered 170+ pips move! We had various facts supporting the short term bullish view here, first we had a bullish divergence followed by a bullish convergence. In addition to this we also had a breakout of the most recent downtrend line. We may consider these as facts provided by the market supporting the short term bullish view, and also, there were no signs opposing this short term bullish view. Then as you can see in the image below how the price moved higher further after that and provided a fantastic move to the upside.
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 bullish 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 majority of the times 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.

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