Hi Traders! AUDNZD technical analysis and short term 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 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.
AUDNZD H4(4 Hours) Chart Analysis – Key Support Zone, Bullish Divergence, Downtrend Line Breakout
On the H4 chart, the price which was moving lower reached a key support zone formed by the 100%(1.05872) Fibonacci expansion level of the big wave and the 61.8%(1.06078) Fibonacci expansion level of the small wave. The price respected this zone and moved higher from it. In addition to this, we also had a bullish divergence that had formed between the first low that has formed at 1.06231 and the second low that has formed at 1.06037 based on the MACD indicator. The price then moved higher and broke above the most recent downtrend line, we may consider these as facts provided by the market supporting the bullish view. Currently, it looks like a correction is happening. 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.
AUDNZD H1(1 Hour) Chart Analysis – Bullish Trend Pattern, Stochastic Oscillator, Two Strong Support Zones
On the H1 chart, the price which was moving higher has created a bullish trend pattern in the form of three higher highs, higher lows, we may consider this as evidence of bullish pressure. Generally, after a bullish trend pattern, we may expect corrections and then potential continuation higher. Currently, it looks like a correction is happening. Also, based on the Stochastic Oscillator we could see that the price has reached its extreme which we may consider as yet another evidence of bullish pressure. In addition to this, we had two strong resistance zones that has formed and the price which was moving higher has broken above these zones and is holding above them. After the breakout these strong resistance zones are acting as two strong support zones for us. Until both these strong support zones (marked in green) shown in the image below hold my short term view remains bullish here and I expect the price to move higher further after pullbacks.
Technical Analysis & Forecast Summary
AUDNZD H4(4 Hours) Chart Analysis
- Key Support Zone, Bullish Divergence, Downtrend Line Breakout
AUDNZD H1(1 Hour) Chart Analysis
- Bullish Trend Pattern, Stochastic Oscillator, Two Strong Support Zones
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
Home Trader Club Team
