Hi Traders! AUDUSD bullish convergence provides buy setup for us. A detailed analysis of this bullish setup is as follows:
AUDUSD H4 Chart:
On the H4 chart we have a false break with bullish divergence which is followed by higher highs thus creating a bullish convergence, which we may consider as evidences of bullish pressure. As per the book scenario, we may now expect pullbacks to happen and then we may look for possible buy setups. In addition to this we also have a bearish hidden divergence that has formed, which we may consider as an evidence of bearish pressure.
AUDUSD H1 Chart:
On the H1 chart the price which is moving higher has reached a critical zone. In addition to this we also have a bearish divergence that has formed which we may consider as an evidence of bearish pressure. We may now look for pullbacks to happen and then we may look for possible buy setups with bullish evidences.
Note: It is always recommended to look for confirmations before you jump into any trade. If you are not sure about how to trade this 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.
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