Hi Traders! EURAUD forecast and technical analysis 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 weekly chart here.
You can watch the video explanation of this idea here
EURAUD W1(Weekly) Chart Analysis – Strong Resistance Zone, Potential Bearish Hidden Divergence, Stochastic Oscillator
On the weekly chart we have a strong support zone that has formed and the price which is moving lower has broken below this zone and is holding below it, we may consider this as evidence of bearish pressure. Currently, this strong support zone is acting as a strong resistance zone for us. We also have a potential bearish hidden divergence that is forming between the first high that has formed at 1.68262 and the second current high at 1.58712 based on the MACD indicator which we may consider as another evidence of bearish pressure. Also, based on the Stochastic Oscillator we could see that the price has reached its extreme which we may consider as yet another evidence of bearish pressure. We may now move down to lower timeframe and look for evidences supporting this bearish view.
EURAUD H4(4 Hours) Chart Analysis – False Breaks, Bearish Divergence, Two Possible Scenarios
On the H4 chart, the price which is moving higher has created multiple false breaks with a bearish divergence between the first high that has formed at 1.58658 and the second high that has formed at 1.58712 which we may consider as evidences of bearish pressure. In my POV there are two possible scenarios from here, which are as follows:
Scenario 1
If the price moves lower and if we get a valid breakout below the low at 1.57929 we may then consider it as a validation for the bearish view, we may then expect the price to continue lower further.
Scenario 2
Alternatively if the price moves higher with momentum and if we get a valid breakout above the high at 1.58712, we may then consider it as a validation for the short term bullish view. We may then expect the price to move higher towards the weekly resistance zone.
Technical Analysis & Forecast Summary
EURAUD W1(Weekly) Chart Analysis
- Strong Resistance Zone, Potential Bearish Hidden Divergence, Stochastic Oscillator
EURAUD H4(4 Hours) Chart Analysis
- False Breaks, Bearish Divergence, Two Possible Scenarios
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 sell/buy setup then you can use any setup and strategy that you have in your arsenal to look for bearish/bullish moves and join this sell/buy trade.
Also don’t forget to protect your sell/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.
Not sure how to enter a trade? Spot reversals (bounces)? Not sure how to spot breakouts?
I invite you to join us in our live market analysis, on daily basis, and improve your trading with us.
Also, you can get one of our strategies free of charge. You will find all the details here
If you have any further questions, don’t hesitate to drop a comment below!
Happy Trading!
Yordan Kuzmanov
Chief Trader at the Traders Academy Club
