Hi Traders! AUDUSD short term forecast update and follow up is here. On September 17th I shared this “AUDUSD Forecast” in Trading View. 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!
AUDUSD H1(1 Hour) Chart Current Scenario
On the H1 chart after the bearish convergence my idea here was to look for pullbacks and then potential continuation lower. We got deeper pullbacks here in the form of double wave to the upside. In addition to this we also had a bearish hidden divergence that had formed between the first high that has formed at 0.73114 and the second high that has formed at 0.73337 based on the MACD indicator. The price then moved lower and broke below the most recent uptrend line. We may consider these as facts provided by the market supporting the bearish view. The price then moved lower further and delivered 300+ pips move so far.
(Note: You can learn about a Killer Forex Strategy “Double Trend Line Principle” here)
Currently, on the H4 chart, we have a bullish divergence that has formed, this is something that we need to pay attention to. So if you are still involved in the sells then this is a good place to consider managing your trade and secure your profits (cash out or partial cash out or trailing protections or partial hedge, etc.. depending on the strategy that you work with).
This is a good example of how the market provided us with hints supporting the bearish view. As you can see in the example above the market provided us with hints in the form of bearish hidden divergence and the most recent uptrend line breakout which acted as evidences of bearish pressure, also there were no contradictory signs. Then as you can see in the screenshot above how the price moved lower after that. This is why I always say that as traders we should follow the facts and hints that the market provides us and take the right action.
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