Hi Traders! AUDUSD short-term forecast and technical analysis is here. We do our analysis on the MetaTrader4 platform (MT4). Some very interesting useful tips and hacks about the MT4 platform could be found 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 evidence 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 Home Trader Club Spoiler alert – free memberships are available! Let’s start our analysis from the highest timeframe which will be the H4 chart here.
AUDUSD H4(4 Hours) Chart Analysis – Bearish Convergence, Stochastic Oscillator
On the H4 chart, we could see that the price which was moving higher has created a bearish divergence between the first high that formed at 0.71420 and the second high that formed at 0.71573 based on the MACD indicator. The price then moved lower and broke below the last low at 0.69834 thus forming a classical setup of bearish divergence followed by bearish convergence, we may consider these as evidence of bearish pressure. Generally, after a bearish convergence, we may look for corrections and then a further continuation lower. Currently, it looks like a correction is happening. In addition to this, based on the Stochastic Oscillator we could see that the price has reached its extreme which we may consider as yet another evidence of bearish pressure. So everything looks good here for the bears and we may now move down to lower timeframe and look for evidences supporting this short term bearish view.
AUDUSD H1(1 Hour) Chart Analysis – Bearish Trend Pattern, Bearish Divergence, Stochastic Oscillator
On the H1 chart, the price which is moving lower has created a bearish trend pattern in the form of three lower highs, lower lows which we may consider as evidence of bearish pressure. Generally, after a bearish trend pattern, we may expect corrections and then a further continuation lower. Currently, it looks like a correction is happening. Also, we have a bearish divergence that has formed between the first high which formed at 0.69509 and the second high which formed at 0.69957 based on the MACD indicator, which we may consider as evidence of bearish pressure. In addition to this, based on the Stochastic Oscillator we could see that the price has reached its extreme here as well which we may consider as yet another evidence of bearish pressure. Until the two strong resistance zones (marked in red) shown in the image below hold, my short-term view remains bearish here and I expect the price to move lower further.
Technical Analysis & Forecast Summary
AUDUSD H4(4 Hours) Chart Analysis
- Bearish Convergence, Stochastic Oscillator
AUDUSD H1(1 Hour) Chart Analysis
- Bearish Trend Pattern, Bearish Divergence, Stochastic Oscillator
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 short-term 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.
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Happy Trading!
Arvinth Akash
Home Trader Club Team
