AUDUSD Forecast Update And Follow Up

On the daily chart the price is currently moving higher. Price still has room higher towards the important resistance zone formed by the downtrend line, fibonacci retracement level (50% – 61.8%) and the fibonacci expansion level 61.8% of the small wave. In addition to this we had an extreme divergence on the MACD histogram and moving averages.

On the H4 chart we had a bullish trend pattern followed by a double wave correction, price has currently broken above the most recent downtrend line. Until the invalidation level shown in the chart holds, we may expect further continuation higher.

AUDUSD Buy Trade Provided Fantastic Profits!

On the H4 chart the price moved perfectly as per my plan. After the breakout of the most recent downtrend line, the price continued higher towards the strong resistance zone exactly as I expected, this buy trade has provided us fantastic profits! After reaching the important resistance zone we got opposite evidences on multiple timeframes so we cashed out of this buy trade.

As I always say, we traders should always trade the facts, we found bullish evidences on multiple timeframes and we had a strong resistance zone so we were expecting the price to move higher towards this zone but we should always be careful and should watch for opposite evidences once we get them especially on multiple timeframes then that’s the time to cash out of our trade. Here we got opposite evidences on both D1 and H4 timeframes after the price reached the resistance zone so we cashed out of the trade. Now its time to reanalyze the charts, have a different read and see what this pair has in store for us.

 

On the H1 chart the price has created a classical setup, we had a bearish divergence and then the price moved lower and created lower lows thus forming a bearish convergence for us, we may consider this as an evidence of bearish pressure. Until the invalidation level shown in the chart holds we may expect further continuation lower.

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Note: Right now with the Corona virus impact the real money flow is not there in the market, a lot of investors and traders are out of the market and are waiting for this crisis to come down. Many traders are sitting on the fence making nothing, what you would see on the market in such period in panics, there are a lot of random fast moves with high volatility, very serious moves, big volumes but these moves are not technical but in such cases its very important to wait for your setups, have your analysis. If the setup comes, trade it and value the risk, if you would be right in high volatility period then once it moves, it moves big and fast but if it doesn’t then you know your risk is limited. Don’t trade without planning your risk its a big mistake.

Watch my video on How to trade during Corona virus Crisis here

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If you have any further questions, don’t hesitate to drop a comment below!

 

To your success,

Vladimir Ribakov
Certified Financial Technician

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