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! This analysis will be based on price action trading (if you want to learn about price action trading, you can watch this video here).
- 1 EURAUD D1(Daily) Chart Analysis – Triangle Pattern Breakout, Parabolic Sar
- 2 EURAUD H4(4 Hours) Chart Analysis – Bearish Convergence, Uptrend Line Breakout, Parabolic Sar, ADX Indicator
- 3 EURAUD H1(1 Hour) Chart Analysis – Bearish Trend Pattern, Invalidation Level
- 4 Technical Analysis & Forecast Summary
- 5 Trading Tips
EURAUD D1(Daily) Chart Analysis – Triangle Pattern Breakout, Parabolic Sar
On the daily chart, the price was moving inside a small triangle pattern. The price which was respecting this pattern so far has currently broken below it which we may consider as evidence of bearish pressure. Also based on the Parabolic Sar we could see that the dots are above the price which we may consider as another evidence of bearish pressure. In addition to these, there are no evidence that shows that the current trend is over yet. We may now move down to lower timeframes and see if we can find evidences supporting this bearish view.
EURAUD H4(4 Hours) Chart Analysis – Bearish Convergence, Uptrend Line Breakout, Parabolic Sar, ADX Indicator
On the H4 chart, we had a false break with the bearish divergence that has formed between the first high that has formed at 1.63996 and the second high that has formed at 1.64053 based on the MACD indicator. The price then moved lower and broke below the last low at 1.62545 thus creating a bearish convergence for us. Generally, after a bearish convergence, we may expect pullbacks and then further continuation lower. Currently, it looks like the pullback that we are looking for is happening. In addition to this, the price has also broken below the most recent uptrend line, we may consider these as evidences of bearish pressure. Based on the Parabolic Sar we could see that the dots are above the price here as well which we may consider as another evidence of bearish pressure. Also, the ADX indicator gave a bearish signal at the cross of -DI (red line) versus +DI (green line) and the main signal line (silver line) reads value over 25, we may consider this as yet another evidence of bearish pressure. So the bottom line here is that the H4 chart has evidences supporting the bearish view.
EURAUD H1(1 Hour) Chart Analysis – Bearish Trend Pattern, Invalidation Level
Looking at the H1 chart we could that the price which is moving lower has created a bearish trend pattern in the form of three lower highs, lower lows. Generally, after a bearish trend pattern, we may expect corrections and then further continuation lower. Currently, it looks like a correction is happening, once this correction completes itself, we may then expect the price to continue lower further. The invalidation level for this bearish view would be the 61.8% (1.62892) fibonacci retracement level of this bearish trend pattern. If the price moves higher, breaks and holds above this level in one straight leg then this bearish view will be invalidated.
Technical Analysis & Forecast Summary
EURAUD D1(Daily) Chart Analysis
- Triangle Pattern Breakout, Parabolic Sar
EURAUD H4(4 Hours) Chart Analysis
- Bearish Convergence, Uptrend Line Breakout, Parabolic Sar, ADX Indicator
EURAUD H1(1 Hour) Chart Analysis
- Bearish Trend Pattern, Invalidation Level
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 setup then you can use any setup and strategy that you have in your arsenal to look for bearish moves and join this sell trade.
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