Hi Traders! AUDUSD forecast follow up and update is here. On March 16th I shared this “AUDUSD Technical Analysis And Forecast” post in our 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!
My Idea
On the H4 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 in the form of potential double wave down. 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. Also, we have a key support zone that has formed based on the 100%(0.71649) Fibonacci expansion level of the first wave and the 61.8%(0.71480) Fibonacci retracement level of the bullish trend pattern. The price is currently bouncing higher from this key support zone, if we get a valid breakout above the most recent downtrend line shown in the image below (marked in blue) we may then consider it as a validation for this bullish view and may expect the price to move higher further.
Based on the above-mentioned analysis my view was bullish here and I was expecting the price to move higher further until the key support zone holds. Also, I mentioned that “If we get a valid breakout above the most recent downtrend line we may then consider it as a validation for this bullish view and may expect the price to move higher further”. The price action followed my analysis exactly as I expected it to here, the validation for the bullish view which is a valid breakout above the downtrend line happened as I expected it to, which we may consider as a fact provided by the market supporting the bullish view. Also, there were no signs opposing this bullish view. The price then moved higher further and delivered around 200 pips move so far!
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Happy Trading!
Arvinth Akash
Traders Academy Club Team
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