Hi Traders! EURAUD forecast follow up and update is here. On June 15th I shared this “Technical Analysis – EURAUD Short Term 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 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 the correction has happened in the form of double wave down. We also have a bullish divergence that has formed between the first low that has formed at 1.56659 and the second low that has formed at 1.56586 based on the MACD indicator, which we may consider as evidence of bullish pressure. In addition to this the price which is moving higher has currently broken above the most recent downtrend line which we may consider as yet another evidence of bullish pressure. Until the strong support zone shown in the image below holds my view remains bullish here and I expect the price to move higher further in the short term.
EURAUD H4(4 Hours) Chart Current Scenario
Based on the above-mentioned analysis my short term view was bullish here and I was expecting the price to move higher further until the strong support zone holds. The price action followed my analysis here exactly as I expected it to. After the breakout of the most recent downtrend line, we had a pullback but the price was holding above the strong support zone and then the price which is moving higher has delivered around 100 pips move so far.
On the M15 chart, the market provided us with various facts supporting the bullish view. The price which was moving lower created a bullish divergence between the first low that has formed at 1.56933 and the second low that has formed at 1.56896 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. Then as you can see in the image below how the price moved higher after that.
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To your success,
Vladimir Ribakov
Certified Financial Technician
