Hi Traders! EURAUD short term 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 daily chart here.
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EURAUD D1(Daily) Chart Analysis – Strong Support Zone, Bullish Hidden Divergence, ADX Indicator
On the daily chart we have a strong resistance that has formed and the price which is moving higher has broken above this strong resistance zone. Currently this strong resistance zone is acting as a strong support zone for us. We also have a bullish hidden divergence that has formed between the first low that has formed on 10th May 2021 and the second low that has formed on 11th June 2021 based on the MACD indicator which we may consider as evidence of bullish pressure. In addition to this, the ADX indicator gave a bullish signal here at the cross of +DI (green line) versus -DI (red line) and the main signal line (silver line) reads value over 25, we may consider this as another evidence of bullish pressure. We may now move down to lower timeframe and look for evidences supporting this bullish view.
EURAUD H4(4 Hours) Chart Analysis – Bullish Trend Pattern, Bullish divergence, Downtrend Line Breakout, Strong Support Zone
On the H4 chart the price which is moving higher has created a bullish trend pattern in the form of three higher highs, higher lows, we may consider this as evidence of bullish pressure. Generally, after a bullish trend pattern, we may expect corrections and then potential continuation higher. Currently, it looks like the correction has happened in the form of double wave down. We also have a bullish divergence that has formed between the first low that has formed at 1.56659 and the second low that has formed at 1.56586 based on the MACD indicator, which we may consider as evidence of bullish pressure. In addition to this the price which is moving higher has currently broken above the most recent downtrend line which we may consider as yet another evidence of bullish pressure. Until the strong support zone shown in the image below holds my view remains bullish here and I expect the price to move higher further in the short term.
Technical Analysis & Forecast Summary
EURAUD D1(Daily) Chart Analysis
- Strong Support Zone, Bullish Hidden Divergence, ADX Indicator
EURAUD H4(4 Hours) Chart Analysis
- Bullish Trend Pattern, Bullish divergence, Downtrend Line Breakout, Strong Support Zone
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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