Hi Traders! EURAUD forecast follow up and update is here. On June 22nd I shared this “Technical Analysis – EURAUD Forecast” post in our blog. In this post, let’s do a recap of this setup and see how it has developed now. 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!
My Idea
On the H4 chart, the price which is moving higher has created multiple false breaks with a bearish divergence between the first high that has formed at 1.58658 and the second high that has formed at 1.58712 which we may consider as evidences of bearish pressure. In my POV there are two possible scenarios from here, which are as follows:
Scenario 1
If the price moves lower and if we get a valid breakout below the low at 1.57929 we may then consider it as a validation for the bearish view, we may then expect the price to continue lower further.
Scenario 2
Alternatively if the price moves higher with momentum and if we get a valid breakout above the high at 1.58712, we may then consider it as a validation for the short term bullish view. We may then expect the price to move higher towards the weekly resistance zone.
EURAUD H1(1 Hour) Chart Current Scenario
On the H1 chart, the price action followed my analysis and moved as per scenario1. The validation for the bearish view which is a valid breakout below the low at 1.57929 happened as I expected it to. The price then provided a small pullback and then it moved lower and delivered around 90 pips move so far.
On the M15 chart the price provided us with facts supporting the bearish view. After the breakout below the low at 1.57929, the H1 chart correction happened in the form of a range on the M15 chart. The price which was moving inside this range broke below the bottom of it, which we may consider as evidence of bearish pressure. We then had a pullback but the price was holding below the top of this range and then it moved lower further and provided a nice move to the downside as you can see in the image below.
So traders when it comes to trading, there are various important factors that we need to pay attention to, just because we have a good setup doesn’t mean that we can enter the trade randomly and it will pay us huge profits. First of all, we need to validate the entry and we should have a perfect entry plan to get into the trade which is a key factor when it comes to trading. This EURAUD forecast is a perfect example of this scenario.
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Happy Trading!
Yordan Kuzmanov
Chief Trader at the Traders Academy Club
