Hi Traders! In today’s trade idea we are going to see the AUDUSD sell opportunity after channel breakout. As I do with every technical analysis post, multi-time frame analysis method will be applied in order to look for all the possible evidences that supports my view on the current trading timeframe and two timeframes higher. We will start our analysis from the highest timeframe now which will be the daily chart here.
Disclaimer : This is not investment advice. Past performance is not an indicator of future results.
AUDUSD D1 (Daily) Chart Analysis – Channel Breakout, ADX Indicator
On the daily chart the price is moving inside a bullish channel, this channel is formed by the highs and lows reaching parallel support and resistance zones. The price which was respecting these two zones so far has currently reached the bottom of the channel and has broken below it. We may consider this as an evidence of bearish pressure. Also in addition to this the ADX indicator gave bearish signal at the cross of -DI (red line) versus +DI (green line) and the main signal line (silver line) reads value over 25. So the bottom line here is that the daily chart has evidences which supports the bearish view.
AUDUSD H4 (4 Hours) Chart Analysis – Bearish Trend Pattern, Lower Lows, Heiken Ashi Candles
On the H4 chart we have a bearish trend pattern that has formed. Also based on the last two lows the price has created lower lows structure and we don’t have any opposite divergences as well. We may consider these as evidences of bearish pressure and we may now look for pullbacks and then sells with more bearish evidences.
In addition to this, 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 so until the condition changes my view remains bearish here.
AUDUSD H1 (1 Hour) Chart Analysis – Bearish Trend Pattern
Looking at the H1 chart we can see that it fits in perfectly with this bearish scenario, the price which is moving lower has created a price action based bearish trend pattern. Based on the current scenario we may now look for pullbacks to happen and once this pullback completes itself we may then look for bearish setups with bearish evidences in order to start looking for the sells.
Technical Analysis & Forecast Summary
Lets recap and summarize the analysis we had so far:
AUDUSD D1 (Daily) Chart Analysis:
- Channel Breakout, ADX Indicator
AUDUSD H4 (4 Hours) Chart Analysis:
- Bearish Trend Pattern, Lower Lows, Heiken Ashi Candles
AUDUSD H1 (1 Hour) Chart Analysis:
- Bearish Trend Pattern
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