Hi Traders! AUDUSD technical analysis and short term forecast 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 evidences 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 Traders Academy Club Spoiler alert – free memberships are available! Let’s start our analysis from the highest timeframe which will be the daily chart here.
On the daily chart, the price which was moving higher has created higher highs based on the MACD indicator, which is a sign of gaining momentum towards the bullish side. Also, the price which is moving lower has reached a strong support zone, where the most recent uptrend line coincides and the price is currently holding in this zone. In addition to this we also had a bullish hidden divergence that has formed between the first low that has formed at 0.71647 and the second low that has formed at 0.73423 based on the MACD indicator which we may consider as another evidence of bullish pressure. Also, based on the Stochastic Oscillator, we could see that the price has reached it’s extreme, we may consider it as yet another evidence of bullish pressure. Also, currently there are no signs opposing this bullish view. We may now move down to lower timeframe and look for evidences supporting this bullish view.
On the H4 chart, currently it looks like a correction is happening in the form of potential double wave down. While measuring the first wave of this correction, we have a key support zone that has formed based on the 61.8%(0.73298) Fibonacci expansion level of the first wave and the daily uptrend line. The price which is moving lower, reached this key support zone, respected it and is currently bouncing higher from this zone. Also, we have a bullish divergence that has formed between the first low that has formed at 0.73992 and the second low that has formed at 0.73423 based on the MACD indicator, which we may consider as evidence of bullish pressure. 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. So everything looks good here for the bulls and we may now move down to one more timeframe lower and look for evidences supporting this short term bullish view.
On the H1 chart, we could see that the price which was moving lower created a bullish divergence that has formed between the first low that has formed at 0.73508 and the second low that has formed at 0.73423 based on the MACD indicator. The price then moved higher and broke above the last high at 0.73779 creating higher highs, thus forming a classical setup of bullish divergence followed by bullish convergence. Hence as per the book scenario, after a bullish convergence, we may look for corrections to happen and then further continuation to the upside. Currently it looks like a correction is happening. In addition to this, the ADX indicator gave a bullish signal here as well 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. Until the H4 key support zone holds my short term view remains bullish here and I expect the price to move higher further.
AUDUSD D1(Daily) Chart Analysis
AUDUSD H4(4 Hours) Chart Analysis
AUDUSD H1(! Hour) Chart Analysis
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 buy setup then you can use any setup and strategy that you have in your arsenal to look for bullish moves and join this buy trade.
Also, don’t forget to protect your buy 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
Traders Academy Club Team
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