AUDCHF Technical Analysis And Forecast

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AUDCHF Technical Analysis And Forecast

Hi Traders! AUDCHF technical analysis and forecast 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! This analysis will be based on price action trading (if you want to learn about price action trading, you can watch this video here).

AUDCHF W1(Weekly) Chart Analysis – Strong Resistance Zone, Psychological Level, Bearish Hidden Divergence

On the weekly chart, we have a strong resistance zone that has formed and the price which is moving higher has currently reached this strong resistance zone. In addition to this, we also have a good downtrend line that has formed which coincides with this strong resistance zone. We also have the psychological level 0.66 coinciding in the same area as well which makes this area a key resistance zone for us. Also, we have a bearish hidden divergence that has formed between the first high that has formed on 2nd December 2018, and the second high that has formed on 31st May 2020 based on the histogram of the MACD indicator which we may consider as evidence of bearish pressure. We may now move down to lower timeframe and see if we have evidences supporting this bearish view.

AUDCHF Technical Analysis And Forecast

 

 

AUDCHF H4 (4 Hours) Chart Analysis – Bearish Trend Pattern

On the H4 chart, the price which is moving lower had created a bearish trend pattern in the form of three lower highs, lower lows, which has completed itself, we may consider this as evidence of bearish pressure. Generally, after a bearish trend pattern, we may expect corrections and then further continuation lower. Currently, it looks like the correction that we are looking for is happening. Once this correction completes itself, we may then expect the price to continue lower further.

AUDCHF Technical Analysis And Forecast

 

Technical Analysis & Forecast Summary

AUDCHF W1(Weekly) Chart Analysis

  • Strong Resistance Zone, Psychological Level, Bearish Hidden Divergence

AUDCHF H4 (4 Hours) Chart Analysis 

  • Bearish Trend Pattern

 

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 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.

You will also find a pretty extensive database of educational materials here in the blog – just use the search or check out the Forex Education section above.

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If you have any further questions, don’t hesitate to drop a comment below!

 

Happy Trading!

Yordan Kuzmanov
Chief Trader at the Traders Academy Club

 

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