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 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 daily chart here.
AUDUSD D1(Daily) Chart Analysis – Key Resistance Zone, Bearish Divergence, Volumes Indicator
On the daily chart, the price reached a key resistance zone that has formed based on the 161.8%(0.68525) Fibonacci expansion level of the first wave and the 61.8%(0.70112) Fibonacci expansion level of the second wave. Also, we have a bearish divergence that has formed between the first high formed at 0.67973 and the second high formed at 0.70631 based on the MACD indicator which we may consider as evidence of bearish pressure. In addition to this, based on the Volumes indicator we could see that the volumes are dropping, we may consider this as yet another evidence of bearish pressure. We may now move down to one timeframe lower and look for evidence supporting this short-term bearish view.
AUDUSD H4(4 Hours) Chart Analysis – Bearish Divergence, Lower Lows, RSI Indicator
On the H4 chart, we have a bearish divergence that has formed here as well, between the first high formed at 0.69495 and the second high formed at 0.70631 based on the MACD indicator which we may consider as evidence of bearish pressure. The price then moved lower and broke below the last low at 0.69295 thus creating lower lows which we may consider as another evidence of bearish pressure. Also in addition to this, we have an uptrend line breakout based on the RSI indicator, which we may consider as yet another evidence of bearish pressure. So everything looks good here for the bears and until the key 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.
Technical Analysis & Forecast Summary
AUDUSD D1(Daily) Chart Analysis
- Key Resistance Zone, Bearish Divergence, Volumes Indicator
AUDUSD H4(4 Hours) Chart Analysis
- Bearish Divergence, Lower Lows, RSI Indicator
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.
