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 H4 chart here.
EURAUD H4(4 Hours) Chart Analysis – Key Support Zone, Downtrend Line Breakout, Higher Highs
On the H4 chart, the price which was moving lower reached a key support zone formed by the 61.8% (1.55908) Fibonacci expansion level of the first wave. The price then moved higher and has broken above the most recent downtrend line, which we may consider as evidence of bullish pressure. In addition to this, the price has also broken above the last high at 1.57291 thus creating higher highs based on the MACD indicator, which we may consider as yet another evidence of bullish pressure. Currently, it looks like a pullback is happening and basically, I expect the price to move higher further after this pullback. We may now move down to lower timeframes and see if we can find evidences supporting this bullish view.
(Note: You can learn about a Killer Forex Strategy “Double Trend Line Principle” here)
EURAUD H1(1 Hour) Chart Analysis – Bullish Trend Pattern, Key Support Zones
Looking at the H1 chart, we could see that the price which was 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 a correction is happening. Also, we have two key support zones that has formed, the first key support zone is formed by the 38.2%(1.57417) – 50%(1.57071) Fibonacci retracement levels of the bullish trend pattern and the 100%(1.57118) Fibonacci expansion level of the first wave we have. The second key support zone is formed by the 61.8%(1.56724) Fibonacci retracement level of the bullish trend pattern and the 161.8%(1.56350) Fibonacci expansion level of the first wave we have. Until both these key support zones hold my view remains bullish here.
Technical Analysis & Forecast Summary
EURAUD H4(4 Hours) Chart Analysis
- Key Support Zone, Downtrend Line Breakout, Higher Highs
EURAUD H1(1 Hour) Chart Analysis
- Bullish Trend Pattern, Key Support Zones
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