Hi Traders! AUDUSD forecast follow up and update is here. On August 11th I shared this AUDUSD Forecast And Technical Analysis post in my blog. In this post, let’s do a recap of this setup and see how it has developed now. 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!
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Now let’s summarize the idea first:
My Idea:
On the H1 chart, we had a false break followed by bearish convergence. 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 H1(1 Hour) Chart Current Scenario
On the H1 chart after the bearish convergence the pullback that we were looking for happened in the form of an ABCD pattern. In this ABCD pattern after the “D” point, we had a bearish engulfing candle pattern and then we had the most recent uptrend line breakout of the ABCD pattern shown in the screenshot below. We may consider these as facts provided by the market supporting the bearish view. The price then moved lower as I expected and delivered around 80 pips move so far.
(Note: You can learn about a Killer Forex Strategy “Double Trend Line Principle” here)
So traders as you can see in the screenshots above how the market provided us hints with all the facts which acted as evidences of bearish pressure such as bearish engulfing candle pattern and the most recent uptrend line breakout after the ABCD correction. And then the price moved lower as I expected it to. This is why when it comes to trading it is a key factor to always take action according to the hints and facts that the market provides us.
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Happy Trading!
Yordan Kuzmanov
Chief Trader at the Traders Academy Club
