Technical Analysis – EURUSD Forecast

Hi Traders! EURUSD 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!. Now, let’s start our analysis from the highest timeframe which will be the daily chart here.

You can watch the video explanation of this idea here

EURUSD D1(Daily) Chart Analysis – Strong Support Zone, Bullish Divergence, ADX Indicator, Parabolic Sar

On the daily chart, the price which was moving lower reached a strong support zone, respected it and is currently bouncing higher from this zone. In addition to this, we also have a bullish divergence that has formed between the first low that has formed on 7th July 2021 and the second low that has formed on 20th August 2021 based on the MACD indicator which we may consider as evidence of bullish pressure. Also, 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. Looking at the Parabolic Sar, we could see that the dots are below the price which we may consider as yet another evidence of bullish pressure. We may now move down to lower timeframe and see if we can find evidences supporting this bullish view.

 

EURUSD H4(4 hours) Chart Analysis – Heikin Ashi Candles, Bullish Divergence

On the H4 chart, 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.
In addition to this, we have a bullish divergence that has formed between the first low that has formed on 11th August 2021 and the second low that has formed on 20th August 2021 based on the MACD indicator which we may consider as another evidence of bullish pressure. Then the price moved higher and broke above the last high at 1.18045 which we may consider as yet another evidence of bullish pressure. Until the three support zones (marked in blue) holds my view remains bullish here and I expect the price to move higher further.

Technical Analysis & Forecast Summary

EURUSD D1(Daily) Chart Analysis 

• Strong Support Zone, Bullish Divergence, ADX Indicator, Parabolic Sar

EURUSD H4(4 hours) Chart Analysis 

• Heikin Ashi Candles, Bullish Divergence

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 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.

Also, don’t forget to protect your buy trade using a stop loss and make sure to set a target and keep a proper risk/reward ratio.

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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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