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.

AUDUSD D1(Daily) Chart Analysis – Key Support Zone, Bullish Divergence, Downtrend Line Breakout, Bullish Hidden Divergence, Stochastic Oscillator

On the daily chart, the price which was moving lower created a double wave down with the price reaching a key support zone formed by the 61.8%(0.67730) Fibonacci expansion level of the first wave. The price respected this zone and moved higher from it, in addition to this, we also had a bullish divergence that had formed between the first low that has formed at 0.68288 and the second low that has formed at 0.68812 based on the MACD indicator. The price then moved higher and broke above the most recent downtrend line, we may consider these as facts provided by the market supporting the bullish view. Currently, it looks like a correction is happening and the price which is moving lower has reached the key support zone again. In addition to this, we also have a bullish hidden divergence that has formed between the first low that has formed at 0.68812 and the second low that has formed at 0.68619 based on the MACD indicator, which we may consider as another evidence provided by the market supporting the bullish view. 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 bullish pressure. So everything looks good here for the bulls and we may now move down to lower timeframe and look for evidences supporting this short term bullish view.

(Note: You can learn about a Killer Forex Strategy “Double Trend Line Principle” here)

AUDUSD H4(4 Hours) Chart Analysis – Bullish Trend Pattern, Bullish Divergence, Two Strong Support Zones

On the H4 chart, the price which was moving higher has created a bullish trend pattern in the form of three higher highs, higher lows, we may consider this as evidence of bullish pressure. Generally, after a bullish trend pattern, we may expect corrections and then potential continuation higher. Currently, it looks like a correction is happening, in addition to this, we have multiple bullish divergence that has formed between the first low that has formed at 0.69907 and the second low that has formed at 0.68557 based on the MACD indicator and CCI indicator. Also, we had two strong resistance zones that has formed and the price which was moving higher has broken above these zones and is holding above them. After the breakout these strong resistance zones are acting as two strong support zones for us. Until both these strong support zones (marked in blue) shown in the image below holds my short term view remains bullish here and I expect the price to move higher further.

Technical Analysis & Forecast Summary

AUDUSD D1(Daily) Chart Analysis 

• Key Support Zone, Bullish Divergence, Downtrend Line Breakout, Bullish Hidden Divergence, Stochastic Oscillator

AUDUSD H4(4 Hours) Chart Analysis 

• Bullish Trend Pattern, Bullish Divergence, Two Strong Support Zones

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 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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Arvinth Akash
Traders Academy Club Team

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