Hi Traders! EURAUD forecast and technical analysis post 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! Let’s start our analysis from the highest timeframe which will be the daily chart here.
On the daily chart, after the strong bullish move currently it looks like a correction is happening in the form of double wave down. The price which is moving lower has currently reached a key support zone formed by the 61.8%(1.59078) Fibonacci expansion level of the first wave of this correction and the 50%(1.58438) Fibonacci retracement level of the big bullish move. In addition to this, we have a potential bullish divergence that is forming between the first low that has formed at 1.59090 and the second current low at 1.58903 based on the MACD indicator. Also, based on the Stochastic Oscillator we could see that the price has reached its extreme. We may consider these as evidences of bullish pressure and also, currently there are no signs opposing this bullish view. So everything looks good here for the bulls and we may now move down to lower timeframe and look for evidences supporting this bullish view.
Looking at the H1 chart, we could see that the price which is moving lower has created multiple false breaks with a bullish divergence between the first low that has formed at 1.59399 and the second low that has formed at 1.58903 based on the MACD indicator, we may consider these as evidences of bullish pressure. So based on all this my view here is bullish and if the price moves higher and if we get a valid breakout above the high at 1.60091 we may then consider it as a validation for the bullish view and may expect the price to move higher further. Alternatively if the price moves lower, breaks and holds below the key support zone then this bullish view will be invalidated.
EURAUD D1(Daily) Chart Analysis
EURAUD H1(1 Hour) Chart Analysis
It is always recommended to look for confirmations before you jump into any trade. If you are not sure about how to trade this 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.
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Arvinth Akash
Traders Academy Club Team
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