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 daily chart here.
AUDNZD D1(Daily) Chart Analysis – Strong Support Zone, Bullish Hidden Divergence, Bullish Divergence
On the daily chart, the price which was moving lower reached a strong support zone respected it and bounced higher from this zone. Also, we could see that the price which was moving lower has created a bullish hidden divergence between the first low that has formed at 1.04705 and the second low that has formed at 1.06744 based on the MACD indicator which we may consider as evidence of bullish pressure. In addition to this we could see that the price which was moving lower has created a bullish divergence that has formed between the first low that has formed at 1.06744 and the second low that has formed at 1.05879 based on the MACD indicator which we may consider as another evidence of bullish pressure. So everything looks good here for the bulls and we may now move down to lower timeframe and look for evidence supporting this short-term bullish view.
AUDNZD H4(4 Hours) Chart Analysis – Key Support Zone, Downtrend Line Breakout, ADX Indicator
On the H4 chart, the price which was moving lower reached a key support zone formed by the 100% (1.05583) Fibonacci expansion level of the big wave and the 100%(1.05779) Fibonacci expansion level of the small wave. The price respected this zone and then it moved higher and has broken above the most recent downtrend line, which we may consider as evidence of bullish pressure. 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 based on all this, 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
AUDNZD D1(Daily) Chart Analysis
- Strong Support Zone, Bullish Hidden Divergence, Bullish Divergence
AUDNZD H4(4 Hours) Chart Analysis
- Key Support Zone, Downtrend Line Breakout, 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
Home Trader Club Team
