AUDUSD Forecast And Technical Analysis

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AUDUSD Forecast Follow Up And Update

Hi Traders! AUDUSD forecast and technical analysis 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).

AUDUSD D1(Daily) Chart Analysis – Strong Resistance Zone, Bearish Divergence, Volumes Indicator

On the daily chart, we have a strong resistance zone that has formed based on the psychological levels of 0.73 and 0.72. The price which was moving higher reached this strong resistance zone, respected it, and is currently holding below it. In addition to this, the price has created a bearish divergence that has formed between the first high that has formed on 10th June 2020 and the second high that has formed on 7th August 2020 based on the moving averages of the MACD indicator. Also, the volumes are dropping based on the Volumes Indicator. We may consider these as evidences of bearish pressure. We may now move down to lower timeframes and see if we can find evidences supporting this bearish view.

AUDUSD Forecast And Technical Analysis

 

 

AUDUSD H4(4 Hours) Chart Analysis – Bearish Divergence, Parabolic Sar, Stochastic Oscillator

On the H4 chart, the price which was moving higher has created multiple false breaks with bearish divergence. This bearish divergence is formed between the first high that has formed on 22nd July 2020 and the second high that has formed on 7th August 2020 based on the moving averages of the MACD indicator which we may consider as evidence of bearish pressure. Also based on the Parabolic Sar the dots are above the price which we may consider as another evidence of bearish pressure. In addition to this, the Stochastic Oscillator has reached it’s extreme which we may consider as yet another evidence of bearish pressure. So the bottom line here is that the H4 has evidences supporting the bearish view.

AUDUSD Forecast And Technical Analysis

 

 

AUDUSD H1(1 Hour) Chart Analysis – Bearish Convergence

On the H1 chart, we had a false break with the bearish divergence that has formed between the first high that has formed at 0.72406 and the second high that has formed at 0.72428 based on the MACD indicator. The price then moved lower and broke below the last low at 0.71738 thus creating a bearish convergence for us. Generally, after a bearish convergence, we may expect pullbacks and then further continuation lower. Currently, it looks like the pullback that we are looking for is happening. Once this pullback completes itself, we may then expect the price to continue lower further.

AUDUSD Forecast And Technical Analysis

 

Technical Analysis & Forecast Summary

AUDUSD D1(Daily) Chart Analysis 

  • Strong Resistance Zone, Bearish Divergence, Volumes Indicator

AUDUSD H4(4 Hours) Chart Analysis

  • Bearish Divergence, Parabolic Sar, Stochastic Oscillator

AUDUSD H1(1 Hour) Chart Analysis

  • Bearish Convergence

 

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.

Not sure how to enter a trade? Spot reversals (bounces)? Not sure how to spot breakouts?

I invite you to join me in my live market analysis, on daily basis, and improve your trading with us.

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Also, you can get one of my strategies free of charge. You will find all the details here

 

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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