Hi Traders! EURAUD forecast and technical analysis is 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! This analysis will be based on price action trading (if you want to learn about price action trading, you can watch this video here).
EURAUD D1(Daily) Chart Analysis – No Ending Divergence
Looking at the daily chart we could see that the price which is moving lower is creating a potential big double wave to the downside. Currently, it looks like the second leg is forming at the moment. Also based on the MACD indicator we could see that there is no ending bullish divergence in play yet. In addition to this currently, there are no signs of trend change. So based on all this, my short term view is bearish here and I expect the price to continue lower further until we get signs of a trend change. We may now move down to lower timeframes and see if we can find evidences supporting this short term bearish view.
EURAUD H4(4 Hours) Chart Analysis – Bearish Trend Pattern, Strong Resistance Zone, Bearish Divergence, Uptrend Line Breakout, ADX Indicator
On the H4 chart, the price which is moving lower has created a bearish trend pattern in the form of three lower highs, lower lows. Generally, after a bearish trend pattern, we may expect correction and then further continuation lower. The correction that we were looking for happened in the form of double wave to the upside and the price reached a strong resistance zone formed by the 38.2%(1.62940) – 50%(1.63427) fibonacci retracement zones of the bearish trend pattern. We also had a bearish divergence between the first high that has formed at 1.63250 and the second high that has formed at 1.63527 based on the MACD indicator. And the price which bounced from this strong resistance zone has currently broken below the most recent uptrend line and is holding below it. We may consider these as evidences of bearish pressure. In addition to this, the ADX indicator gave a bearish signal at the cross of -DI (red line) versus +DI (green line), and the main signal line (silver line) reads value over 25, we may consider this as yet another evidence of bearish pressure. So based on all this, my short term view is bearish here and I expect the price to continue lower further.
Technical Analysis & Forecast Summary
EURAUD D1(Daily) Chart Analysis
- No Ending Divergence
EURAUD H4(4 Hours) Chart Analysis
- Bearish Trend Pattern, Strong Resistance Zone, Bearish Divergence, Uptrend Line Breakout, ADX Indicator
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