Hi Traders! AUDCHF 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).
AUDCHF D1(Daily) Chart Analysis – Bullish Trend Pattern, Range, Stochastic Oscillator
On the daily chart, the price which is moving higher has created a bullish trend pattern in the form of three higher highs, higher lows, which we may consider as evidence of bullish pressure. Generally, after a bullish trend pattern we may expect a correction to happen and then further continuation higher. The correction that we were looking for happened in the form of a range and the price which was respecting this range so far has currently broken above the top of it, which we may consider as another evidence of bullish pressure. Also based on the Stochastic Oscillator we could see that the price has reached its extreme. Currently, after the breakout of the range, it looks like a pullback is happening. We may now move down to lower timeframe and see if we can find evidences supporting this bullish view.
AUDCHF H4(4 Hours) Chart Analysis – Strong Support Zone, Bullish Divergence, Parabolic Sar
On the H4 chart, the price which is moving higher has created a bullish trend pattern, which we may consider as evidence of bullish pressure. Generally, after a bullish trend pattern, we may expect corrections and then potential continuation higher. We also had a strong resistance zone that had formed which the price has broken above and currently, this strong resistance zone is acting as a strong support zone for us. Also while measuring the bullish trend pattern using the fibonacci retracement tool we could see that the 38.2%(0.66276) – 50%(0.66017) fibonacci retracement zones coincide exactly with this strong support zone. The price which was moving lower reached this strong support zone, respected it, and is currently moving higher. We also had a bullish divergence between the first low that has formed on 3rd September 2020 and the second low that has formed on 14th September 2020 based on the MACD indicator which we may consider as evidence of bullish pressure. Also based on the Parabolic Sar the dots are below the price which we may consider as yet another evidence of bullish pressure. So until this strong support zone holds my view remains bullish here and I expect the price to continue higher further.
Technical Analysis & Forecast Summary
AUDCHF D1(Daily) Chart Analysis
- Bullish Trend Pattern, Range, Stochastic Oscillator
AUDCHF H4(4 Hours) Chart Analysis
- Strong Support Zone, Bullish Divergence, Parabolic Sar
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