Hi Traders! EURAUD forecast update and follow up is here. On October 6th I shared this “EURAUD Forecast And Technical Analysis ” 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
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 H1(1 Hour) Chart Current Scenario
In this pair based on the above-mentioned analysis, my view was bullish here and I was expecting the price to move higher further until the key support zone holds. Also, I mentioned that “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”. The price action didn’t follow my analysis here, the validation for the bullish view which is a valid breakout above the high at 1.60091 didn’t happen. The price then moved lower and broke below the key support zone and held below it, thus invalidating the bullish view. My current view on this pair is neutral.
Even though we had facts supporting the bullish view here, the validation for the bullish view which is a valid breakout above the high at 1.60091 didn’t happen here. The price which bounced higher from the key support zone didn’t break above the high at 1.6009. Then as you can see in the image above how the price moved lower further and broke below the key support zone after that, thus invalidating this bullish view. This is why we should always trade based on the facts and hints provided by the market and take the right actions according to that.
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 yet another good example of this scenario.
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Happy Trading!
Arvinth Akash
Traders Academy Club Team
