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 Traders Academy Club Spoiler alert – free memberships are available! Let’s start our analysis from the highest timeframe which will be the daily chart here.
AUDCHF D1(Daily) Chart Analysis – Strong Resistance Zone, Potential Bearish Divergence, Stochastic Oscillator
On the daily chart, after the strong bearish move currently it looks like a correction is happening in the form of double wave to the upside. The price which is moving higher has reached a strong resistance zone where the 100%(0.69749) Fibonacci expansion level of the first wave coincides. Price respected this strong resistance zone and is currently bouncing lower from this zone. Also, we could see that the price has created a potential bearish divergence between the first high that has formed at 0.68247 and the second current high that has formed at 0.69322 based on the MACD indicator which we may consider as evidence of bearish pressure. In addition to this, based on the Stochastic Oscillator we could see that the price has reached its extreme 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 bearish view.
AUDCHF H1(1 Hour) Chart Analysis – Bearish Convergence, ADX Indicator
Looking at 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 0.69314 and the second high that has formed at 0.69322 based on the MACD indicator. The price then moved lower and broke below the last low at 0.68943 thus forming a classical setup of bearish divergence followed by bearish convergence, we may consider these as evidences of bearish pressure. Generally, after a bearish convergence we may look for corrections and then further continuation lower. Currently, it looks like a correction is happening. 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 yet another evidence of bearish pressure. Until the invalidation level (0.69322) 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 D1(Daily) Chart Analysis
- Strong Resistance Zone, Potential Bearish Divergence, Stochastic Oscillator
AUDCHF H1(1 Hour) Chart Analysis
- Bearish Convergence, 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.
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Arvinth Akash
Traders Academy Club Team
