Technical Analysis – AUDCHF Forecast

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Technical Analysis - AUDCHF Forecast

Hi Traders! AUDCHF technical analysis and 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. As we do in every technical analysis post we are going to perform the multi-timeframe technical analysis on this pair in order to find possible trading opportunities. 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 now from the highest timeframe which will be the daily chart here.

AUDCHF D1(Daily) Chart Analysis Key Support Zone, Bullish Convergence, Stochastic Oscillator

On the daily chart, the price which was moving lower has reached a key support zone where the 0.65000 psychological level coincides, the price respected it and bounced higher from this zone. Also, we had a bullish divergence that has formed between the first low that has formed at 0.66301 and the second low that has formed at 0.65128 based on the MACD indicator. Then the price moved higher and broke above the last high at 0.68038 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, based on the Stochastic Oscillator we could see that the price has reached its extreme which we may consider as yet another evidence of bullish pressure. We may now move down to lower timeframe and see if we can find evidences supporting this bullish view.
Technical Analysis - AUDCHF Forecast

 

AUDCHF H4(4 Hours) Chart Analysis – Range, Key Support Zone, ADX Indicator

Looking at the H4 chart, we could see that currently it looks like a flat correction is happening in the form of a range. While measuring the first wave inside this range we have a key support zone that has formed.based on the 100%(0.66716) Fibonacci expansion level of the first wave and the bottom of the range. The price has currently reached this key support zone, respected it and is bouncing higher from this zone. In addition to this, the ADX indicator gave a bullish signal here 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 evidence of bullish pressure. Until this key support zone holds my view remains bullish here. If the price breaks and holds above the top of this range we may then consider it as a validation for this bullish view and may expect the price to continue higher further.
Technical Analysis - AUDCHF Forecast

Technical Analysis & Forecast Summary

AUDCHF D1(Daily) Chart Analysis 

  • Key Support Zone, Bullish Convergence, Stochastic Oscillator

AUDCHF H4(4 Hour) Chart Analysis 

  • Range, Key Support Zone, ADX Indicator

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 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.

Also, don’t forget to protect your buy trade using a stop loss and make sure to set a target and keep a proper risk/reward ratio.

You will also find a pretty extensive database of educational materials here in the blog – just use the search or check out the Forex Education section above.

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Happy Trading!

Arvinth Akash
Traders Academy Club Team

 

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