Hi Traders! EURAUD short term forecast update and follow up is here. On April 26th 2021 I shared this “EURAUD Technical Analysis And 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, we have a bullish rally and currently it looks like this bullish rally is about to continue itself. Based on the Heikin Ashi candles we can see that currently, we have strong bullish bodies in upward moving market conditions so it basically reflects a bullish environment. Also, the price which was moving higher has created higher highs based on the MACD indicator, which is a sign of gaining momentum towards the bullish side. In addition to this, based on the Stochastic Oscillator, we could see that the price has reached it’s extreme, we may consider it as yet another evidence of bullish pressure. Also, the price which is moving lower is currently nearing a key support zone, where the most recent uptrend line coincides. Until this key support zone holds my short term view remains bullish here and I expect the price to move higher further.
EURAUD H4(4 Hours) Chart Current Scenario
On the H4 chart, 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 key support zone holds. After the higher highs, the pullback that I was looking for happened with the price reaching the key support zone, respected it and moved higher from this zone. In addition to this, the pullback happened in the form of double wave to the downside and then the price moved higher and broke above the most recent downtrend line. We may consider these as facts provided by the market supporting the bullish view. Also, there were no signs opposing this short term bullish view. The price then moved higher further as I expected it to and delivered 680+ pips move to the upside as you can see in the image below.
(Note: You can learn about a Killer Forex Strategy “Double Trend Line Principle” here)
As traders we always have two choices, the first one is to fall in love with our analysis and try to convince the market and expect the price to move in the direction as per our wish. The second one is to follow the facts that the market provides us and make the right actions according to that. As you know the first option won’t help us and as you can see in the example above what happened when we followed the facts that the market hinted to us and took the right action according to that.
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Happy Trading!
Arvinth Akash
Traders Academy Club Team.
