Hi Traders! EURUSD 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!. Now, let’s start our analysis from the highest timeframe which will be the daily chart here.
EURUSD D1(Daily) Chart Analysis – Lower Lows, Strong Resistance Zone, Bearish Hidden Divergence
Looking at the daily chart, we could see that the price which was moving lower has created lower lows based on the MACD indicator which is a sign of gaining momentum towards the bearish side. Currently, it looks like a correction is happening and the price which is moving higher has reached a strong resistance zone, respected it and is currently bouncing lower from this zone. In addition to this, we could see that the price has created a bearish hidden divergence between the first high that has formed at 1.06147 and the second high that has formed at 1.03685 based on the MACD indicator, which we may consider as evidence of bearish pressure. So everything looks good here for the bears and we may now move down to lower timeframe and look for evidences supporting this short term bearish view.
EURUSD H1(1 Hour) Chart Analysis – Heikin Ashi Candles, Bearish Trend Pattern, Two Strong Resistance Zones
On the H1 chart, based on the Heikin Ashi candles we can see that currently, we have strong bearish bodies in downward moving market conditions so it basically reflects a bearish environment. In addition to this, the price which is moving lower has created a bearish trend pattern in the form of three lower highs, lower lows which we may consider as evidence of bearish pressure. Generally, after a bearish trend pattern, we may expect corrections and then further continuation lower. Currently it looks like a correction is happening. Also, we had two strong support zones that has formed and the price which was moving lower has broken below these zones and is holding below them, we may consider this as yet another evidence of bearish pressure. Currently, these strong support zones are acting as strong resistance zones for us. Until these two strong resistance zones hold my short term view remains bearish here and I expect the price to move lower further.
Technical Analysis & Forecast Summary
EURUSD D1(Daily) Chart Analysis
- Lower Lows, Strong Resistance Zone, Bearish Hidden Divergence
EURUSD H1(1 Hour) Chart Analysis
- Heikin Ashi Candles, Bearish Trend Pattern, Two Strong Resistance Zones
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 short term 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.
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Happy Trading!
Arvinth Akash
Traders Academy Club Team.
