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 – Key Support Zone, Bullish Divergence
On the daily chart, the price which was moving lower has reached a key support zone formed by the 261.8%(0.63575) Fibonacci expansion level of the first wave and the 61.8%(0.64057) Fibonacci expansion level of the second wave. The price respected this key support zone and is bouncing higher from it. Also, we have a bullish divergence that has formed between the first low that has formed at 0.65116 and the second low that has formed at 0.63404 based on the MACD indicator which we may consider as evidence of bullish pressure. Also, currently there are no signs opposing this short term bullish view. So everything looks good here for the bulls and we may now move down to lower timeframe and look for evidences supporting this short term bullish view.
AUDCHF H1(1 Hour) Chart Analysis – Bullish Divergence, Higher Highs, Heikin Ashi Candles, ADX Indicator
Looking at the H1 chart, we could see that the the price which was moving lower has created a bullish divergence that has formed between the first low that has formed at 0.64598 and the second low that has formed at 0.63404 based on the MACD indicator which we may consider as evidence of bullish pressure. Also, the price which is moving higher has broken the last high at 0.64507 and has created higher highs based on the MACD indicator which is a sign of gaining momentum towards the bullish side. Also, based on the Heikin Ashi candles we can see that currently, we have strong bullish bodies in upward moving market conditions so it basically reflects a bullish environment. 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. So everything looks good here for the bulls. Until the key support zone (marked in blue) shown in the image below holds my short term view remains bullish here and I expect the price to move higher further after pullbacks.
Technical Analysis & Forecast Summary
AUDCHF D1(Daily) Chart Analysis
- Key Support Zone, Bullish Divergence
AUDCHF H1(1 Hour) Chart Analysis
- Bullish Divergence, Higher Highs, Heikin Ashi Candles, 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 buy setup then you can use any setup and strategy that you have in your arsenal to look for bullish moves and join this buy trade.
Also, don’t forget to protect your buy 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
Traders Academy Club Team
