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 D1(Daily) Chart Analysis – Bullish Trend Pattern, Strong Support Zone, Parabolic Sar, ADX Indicator
On the daily chart, the price which was moving higher has created a bullish trend pattern in the form of three higher highs, higher lows. Currently it looks like this bullish trend pattern has completed itself. generally, after a bullish trend pattern, we may expect corrections and then potential continuation higher. Currently, it looks like the correction that we are looking for is happening. Also while measuring the bullish trend pattern using the fibonacci retracement tool we have a strong support zone that has formed based on the 38.2%(0.62067) – 50%(0.60413) fibonacci retracement zones. The price still has room lower towards this strong support zone. In addition to this, the ADX indicator gave a bearish signal at the cross of -DI (red line) versus +DI (green line), and the main signal line (silver line) reads value over 25. Also based on the Parabolic Sar the dots are above the price, we may consider these as evidences of bearish pressure. We may now move down to lower timeframe and see if we can find evidences supporting this bearish view.
AUDCHF H4(4 Hours) Chart Analysis – Bearish Trend Pattern, ADX Indicator, Strong Resistance Zone
On the H4 chart, the price which was moving lower has created a bearish trend pattern in the form of three lower highs, lower lows (we also have the bearish trend pattern on the last leg as well as you can see in the screenshot below), we may consider this as evidence of bearish pressure. 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. We may consider this as another evidence of bearish pressure. We also had a strong support zone and the price which was moving lower has broken below this strong support zone and is holding below it. Currently this strong support zone acts as a strong resistance zone for us (marked in blue). Until this strong resistance zone holds my view remains bearish here and I expect the price to continue lower further.
Technical Analysis & Forecast Summary
AUDCHF D1(Daily) Chart Analysis
- Bullish Trend Pattern, Strong Support Zone, Parabolic Sar, ADX Indicator
AUDCHF H4(4 Hours) Chart Analysis
- Bearish Trend Pattern, ADX Indicator, Strong Resistance Zone
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