Technical Analysis – EURAUD Forecast

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Technical Analysis - EURAUD Forecast

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).

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.

Technical Analysis - EURAUD Forecast

 

 

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.

Technical Analysis - EURAUD Forecast

 

 

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 - EURAUD Forecast

 

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

 

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 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.

Also don’t forget to protect your sell 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 me in my live market analysis, on daily basis, and improve your trading with us.

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Also, you can get one of my 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!

 

To your success,

Vladimir Ribakov
Certified Financial Technician

 

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