Hi Traders! AUDUSD technical analysis and short-term forecast is here. We do our analysis on the MetaTrader4 platform (MT4). Some very interesting and useful tips and hacks about the MT4 platform could be found here. 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!
AUDUSD H4(4 Hours) Chart Analysis – Heikin Ashi Candles, Bearish Trend Pattern, Bearish Convergence, Strong Resistance Zone
On the H4 chart, currently, we have a strong bearish momentum and based on the Heikin Ashi candles we can see that currently, we have strong bearish bodies in downward moving market conditions so it basically reflects a bearish environment. Also, the price which was 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 further continuation lower. Currently, it looks like a correction has happened in the form of double wave to the upside. Also, the price which was moving higher has reached a strong resistance zone, respected it and bounced lower from this zone. In addition to this, we have a bearish divergence that has formed between the first high that has formed at 0.66182 and the second high that has formed at 0.66435 based on the MACD indicator. The price then moved lower and broke below the last low at 0.65485 thus forming a classical setup of bearish divergence followed by bearish convergence, we may consider this as evidence of bearish pressure. As per the book scenario after a bearish convergence we may expect corrections and then further continuation lower. Currently it looks like a correction is happening. So everything looks good here for the bears and until this strong resistance zone (marked in red) shown in the image below holds my short term view remains bearish here and I expect the price to move lower further after pullbacks.
Trading Tips
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