Hi Traders! EURAUD technical analysis and short term forecast post is here. We do our analysis on the MetaTrader4 platform (MT4), some very interesting, useful tips and hacks about the MT4 platform could be found here. If you would like to learn more about the way we trade and the technical analysis we use then check out the Home Trader Club Spoiler alert – free memberships are available!
EURAUD H4(4 Hours) Chart Analysis – Bullish Trend Pattern, Bullish Hidden Divergence, Continuing Bullish Divergence, Two Strong Support Zones
On the H4 chart, the price which was moving higher has created a bullish trend pattern in the form of three higher highs, and higher lows, we may consider this as evidence of bullish pressure. Generally, after a bullish trend pattern, we may expect corrections and then potential continuation higher. Currently, it looks like a correction is happening and the price which is moving lower has reached a strong support zone. Also, we could see that the price which is moving lower created a bullish hidden divergence between the first low that formed at 1.61270 and the second low that formed at 1.64800, followed by a potential continuing bullish divergence between the first low that formed at 1.64800 and the second low that has formed at 1.64701 based on the MACD indicator, which we may consider as evidences of bullish pressure. There are two possible scenarios from here, the price might move higher from the current zone or alternatively if it moves lower then the next area to look for bullish setups with bullish evidences would be the second strong support zone. Until both these strong support zones (marked in green) shown in the image below holds my short term view remains bullish here and I expect the price to move higher further.
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Arvinth Akash
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