Hi Traders! AUDCHF short term forecast and technical analysis 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 Home Trader Club Spoiler alert – free memberships are available! Let’s start our analysis from the highest timeframe which will be the H4 chart here.
AUDCHF H4(4 Hours) Chart Analysis – Strong Resistance Zone, Bearish Hidden Divergence, ADX Indicator
On the H4 chart, we have a strong resistance zone that has formed and the price which is moving higher has reached this zone, respected it and is bouncing lower from this zone. In addition to this, the price has created a bearish hidden divergence between the first high that has formed at 0.63595 and the second high that formed at 0.61876, followed by a continuing bearish divergence between the first high formed at 0.61876 and the second high formed at 0.62485 based on the MACD indicator, which we may consider as evidence of bearish pressure. Also, 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 yet 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 – Bearish Divergence, ADX Indicator
On the H1 chart, we could see that the price which was moving higher has created a bearish divergence between the first high that has formed at 0.61876 and the second high that formed at 0.62485 based on the MACD indicator. 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. In addition to this, currently, there are no signs opposing this short-term bearish view. So based on all this, until the 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.
Technical Analysis & Forecast Summary
AUDCHF H4(4 Hours) Chart Analysis
- Strong Resistance Zone, Bearish Hidden Divergence, ADX Indicator
AUDCHF H1(1 Hour) Chart Analysis
- Bearish Divergence, 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
