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 – Strong Resistance Zone, Stochastic Oscillator
On the daily chart, after the strong bullish move, the price which was moving higher reached a strong resistance zone, respected it and bounced lower from this zone. Currently it looks like a correction is happening, we have the first leg down followed by a correction. Basically, I expect the price to create the second leg to the downside. In addition to this, based on the Stochastic Oscillator we could see that the price has reached its extreme, which we may consider as evidence of bearish pressure. Also, currently there are no signs opposing this short term bearish view. We may now move down to lower timeframe and look for evidences supporting this short term bearish view.
EURAUD H4(4 Hours) Chart Analysis – Range, Key Resistance Zone, Bearish Divergence
On the H4 chart, after the strong Fibonacci expansion tool, we have a key resistance zone that has formed. This key resistance zone is formed by the 161.8%(1.62643) Fibonacci expansion level of the first wave, the 100%(1.62508) Fibonacci expansion level of the second wave and the top of this range. Also, we have a bearish divergence that has formed between the first high that has formed at 1.60848 and the second high that has formed at 1.62334 based on the MACD indicator. Until the key holds my view remains here. If the price breaks and holds below the bottom of this range we may then consider it as a validation for the short term view and may expect the price to continue lower further.
Technical Analysis & Forecast Summary
EURAUD D1(Daily) Chart Analysis
- Strong Resistance Zone, Stochastic Oscillator
EURAUD H4(4 Hours) Chart Analysis
- Range, Key Resistance Zone, Bearish Divergence
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