Hi Traders! EURAUD technical analysis and short term 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! Let’s start our analysis from the highest timeframe which will be the daily chart here.
EURAUD D1(Daily) Chart Analysis – Bullish Convergence, ADX Indicator
On the daily chart, we could see that the price which was moving lower created a bullish divergence that has formed between the first low that has formed at 1.45348 and the second low that has formed at 1.43200 based on the MACD indicator. The price then moved higher and broke above the last high at 1.49417 creating higher highs, thus forming a classical setup of bullish divergence followed by bullish convergence. Hence as per the book scenario, after a bullish convergence, we may look for corrections to happen and then further continuation to the upside. Currently it looks like a correction is happening. In addition to this, the ADX indicator gave a bullish signal here as well at the cross of +DI (green line) versus -DI (red line) and the main signal line (silver line) reads value over 25, we may consider this as yet another evidence of bullish pressure. Also, currently there are no signs opposing this bullish view. We may now move down to lower timeframe and look for evidences supporting this bullish view.
EURAUD H4(4 Hours) Chart Analysis – Heikin Ashi Candles, Higher Highs, Stochastic Oscillator, Key Support Zone
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.
Technical Analysis & Forecast Summary
EURAUD D1(Daily) Chart Analysis
- Bullish Convergence, ADX Indicator
EURAUD H4(4 Hours) Chart Analysis
- Heikin Ashi Candles, Higher Highs, Stochastic Oscillator, Key Support Zone
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 buy setup then you can use any setup and strategy that you have in your arsenal to look for bullish moves and join this buy trade.
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Happy Trading!
Arvinth Akash
Traders Academy Club Team
