Hi Traders! In today’s technical analysis post we are going to discuss about AUDCHF short term buy idea. We will be using the MetaTrader4 platform (MT4) for our analysis. Some very interesting and 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 Traders Academy Club. Spoiler alert – free memberships are available!
- 1 AUDCHF W1 (Weekly) Chart Analysis – Special Or Triple Cycle Completed
- 2 AUDCHF H4 (4 hours) Chart Analysis – Fibonacci Expansion, Important Support Zone, MACD Indicator
- 3 AUDCHF H1 (1 Hour) Chart Analysis – Bullish Convergence, Heiken Ashi Candle Sticks
- 4 Technical Analysis & Forecast Summary
AUDCHF W1 (Weekly) Chart Analysis – Special Or Triple Cycle Completed
On the weekly chart the price which was moving lower has created a special or triple cycle. Currently it looks like this special or triple cycle has completed itself, generally as per the book scenario we may now look for retraces to happen and currently it looks like a retrace is happening. So we may now look for bullish evidences on lower timeframes in order to start looking for short term buys. Now lets move down to the H4 chart and see if we can find any evidences that supports this short term bullish view.
AUDCHF H4 (4 hours) Chart Analysis – Fibonacci Expansion, Important Support Zone, MACD Indicator
On the H4 chart based on the fibonacci expansion levels of the two waves we have the 161.8% fibonacci expansion level of the first wave we have at 0.65991 and the 61.8% fibonacci expansion level of the second wave we have at 0.66097 coincides on the same zone thus making this area a very strong technical support level. Currently the price has reached this zone and is moving higher, in addition to this the price has also created a double bottom and based on the MACD indicator we have a bullish divergence that has formed on both the MACD histogram and the moving averages which we may consider as evidences of bullish pressure.
AUDCHF H1 (1 Hour) Chart Analysis – Bullish Convergence, Heiken Ashi Candle Sticks
On the H1 chart the price has created a bullish divergence based on the MACD indicator and then the price moved higher creating higher highs, thus forming a classical setup of bullish divergence followed by bullish convergence. Hence as per the book scenario we may now look for corrections to happen and then continuation to the upside. Also 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, so until the condition changes my view remains bullish here. We may now look for pullbacks and then short term buys with more bullish evidences.
Technical Analysis & Forecast Summary
Lets recap and summarize the analysis we had so far:
AUDCHF W1 (Weekly) Chart Analysis:
- Special Or Triple Cycle Completed
AUDCHF H4 (4 hours) Chart Analysis:
- Fibonacci Expansion, Important Support Zone, MACD Indicator
AUDCHF H1 (1 Hour) Chart Analysis:
- Bullish Convergence, Heiken Ashi Candle Sticks
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.
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