Hi Traders! EURAUD short term 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! Let’s start our analysis from the highest timeframe which will be the daily chart here.
EURAUD D1(Daily) Chart Analysis – Key Resistance Zone, Bearish Hidden Divergence, Stochastic Oscillator
On the daily chart, the price which is moving higher has currently reached a key resistance zone. This key resistance zone is formed by the 161.8%(1.60800) Fibonacci expansion level of the first wave and the 61.8%(1.60238) Fibonacci retracement level of the strong bearish move. In addition to this, we could see that the price has created a bearish hidden divergence between the first high that has formed at 1.62334 and the second high that has formed at 1.59704 based on the MACD indicator, which we may consider as evidence of bearish pressure. Also, based on the Stochastic Oscillator we could see that the price has reached it’s extreme, which we may consider as yet another evidence of bearish pressure. So everything looks good here for the bears and we may now move down to lower timeframe and look for evidences supporting this short term bearish view.
EURAUD H1(1 Hour) Chart Analysis – Bearish Divergence, Stochastic Oscillator
Looking at the H1 chart, we could see that the price which is moving higher has created a bearish divergence between the first high that has formed at 1.59119 and the second high that has formed at 1.59704 based on the MACD indicator, which we may consider as evidence of bearish pressure. Also, based on the Stochastic Oscillator we could see that the price has reached it’s extreme here as well, which we may consider as yet another evidence of bearish pressure. In addition to this, currently there are no signs opposing this short term bearish view. So based on all this, until the key resistance zone shown in the image below (marked in red) holds my short term view remains bearish here.
Technical Analysis & Forecast Summary
EURAUD D1(Daily) Chart Analysis
- Key Resistance Zone, Bearish Hidden Divergence, Stochastic Oscillator
EURAUD H1(1 Hour) Chart Analysis
- Bearish Divergence, Stochastic Oscillator
Trading Tips
It is always recommended to look for confirmations before you jump into any trade. If you are not sure about how to trade this short term sell setup then you can use any setup and strategy that you have in your arsenal to look for bearish moves and join this sell trade.
Also, don’t forget to protect your sell trade using a stop loss and make sure to set a target and keep a proper risk/reward ratio.
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Happy Trading!
Arvinth Akash
Traders Academy Club Team.
