Hi Traders! EURAUD technical analysis and forecast 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! This analysis will be based on price action trading (if you want to learn about price action trading, you can watch this video here).
EURAUD D1(Daily) Chart Analysis – ABCD Correction, Bearish Divergence, Uptrend Line Breakout, ADX Indicator
On the daily chart we had a bearish rally followed by a correction in the form of an ABCD pattern. In addition to this we had a bearish divergence that has formed between the first high that has formed on 25th September 2020 and the second high that has formed on 20th October 2020 based on the histogram of the MACD indicator which we may consider as evidence of bearish pressure. The price then moved lower and has currently broken below the most recent uptrend line which we may consider as another evidence of bearish pressure. Also, the ADX indicator gave a bearish signal at the cross of -DI (red line) versus +DI (green line) and the main signal line (silver line) reads value over 25, we may consider this as yet another evidence of bearish pressure. We may now move down to lower timeframe and see if we can find evidences supporting this bearish view.
(Note: You can learn about a Killer Forex Strategy “Double Trend Line Principle” here)
EURAUD H4(4 Hours) Chart Analysis – Strong Support Zone Breakout, ADX Indicator, Downtrend Line
On the H4 chart we had a strong support zone that has formed and the price which is moving lower has broken below this strong support zone and is holding below it, we may consider this as evidence of bearish pressure. Currently this strong support zone acts as a strong resistance zone for us. Also, the ADX indicator gave a bearish signal here as well at the cross of -DI (red line) versus +DI (green line) and the main signal line (silver line) reads value over 25, we may consider this as yet another evidence of bearish pressure. And currently there are no evidences that show this bearish trend is over yet. So until the downtrend line (marked in red) shown in the screenshot below holds my view remains bearish here and I expect the price to continue lower further. Alternatively if we get a valid breakout above this downtrend line then this bearish view will be invalidated.
Technical Analysis & Forecast Summary
EURAUD D1(Daily) Chart Analysis
- ABCD Correction, Bearish Divergence, Uptrend Line Breakout, ADX Indicator
EURAUD H4(4 Hours) Chart Analysis
- Strong Support Zone Breakout, ADX Indicator, Downtrend Line
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