Hi Traders! AUDCHF short-term forecast and technical analysis is here. We do our analysis on the MetaTrader4 platform (MT4). Some very interesting, useful tips and hacks about the MT4 platform could be found here. As we do in every technical analysis post we are going to perform the multi-timeframe technical analysis on this pair in order to find possible trading opportunities. 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! Let’s start our analysis now from the highest timeframe which will be the H4 chart here.
AUDCHF H4(4 Hours) Chart Analysis – Bearish Convergence, ADX Indicator
On the H4 chart, we have a bearish divergence that has formed between the first high that has formed at 0.59922 and the second high that has formed at 0.59934 based on the MACD indicator. The price then moved lower and broke below the last low at 0.59040 thus forming a classical setup of bearish divergence followed by bearish convergence, we may consider this as evidence of bearish pressure. As per the book scenario after a bearish convergence we may expect corrections and then further continuation lower. 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 value over 25 which we may consider as another evidence of bearish pressure. So everything looks good here for the bears and we may now move down to lower timeframe and look for evidences supporting this short term bearish view.
AUDCHF H1(1 Hour) Chart Analysis – Strong Resistance Zone, Bearish Trend Pattern, ADX Indicator
On the H1 chart, we have a strong resistance zone that has formed and the price which is moving higher reached this zone, respected it and bounced lower from this zone. Also, the price which is moving lower has created a bearish trend pattern in the form of three lower highs, lower lows which we may consider as evidence of bearish pressure. Generally, after a bearish trend pattern, we may expect corrections and then further continuation lower. In addition to this, the ADX indicator gave a bearish signal here as well at the cross of -DI (red line) versus +DI (green line) and the main signal line (silver line) reads value over 25 which we may consider as yet another evidence of bearish pressure. So the bottom line here is that, everything looks good here as well for the bears and I expect the price to move lower further in the short term after pullbacks until the strong resistance zone (marked in red) shown in the image below holds.
Technical Analysis & Forecast Summary
AUDCHF H4(4 Hours) Chart Analysis
- Bearish Convergence, ADX Indicator
AUDCHF H1(1 Hour) Chart Analysis
- Strong Resistance Zone, Bearish Trend Pattern, ADX Indicator
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.
Also, don’t forget to protect your sell 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
Home Trader Club Team.
