Hi Traders! USDILS 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!
USDILS D1(Daily) Chart Analysis – Range, Stochastic Oscillator
On the daily chart after the first move to the upside currently it looks like a flat correction is happening in the form of a range. This range is formed by the highs and lows reaching parallel support and resistance zones. The price which is respecting this range so far has currently reached the bottom of it. In addition to this we have a potential bullish divergence that is forming based on the MACD indicator. Also based on the Stochastic Oscillator we could see that the price has reached its extreme. We may consider these as evidences of bullish pressure, also currently there are no signs opposing this bullish view. We may now move down to lower timeframe and see if we can find evidences supporting this bullish view.
USDILS H4(4 Hours) Chart Analysis – Bullish Divergence, ADX Indicator
On the H4 chart we have a bullish divergence that has formed between the first low that has formed on 17th May 2021 and the second low that has formed on 26th May 2021 based on the MACD indicator we may consider this as evidence of bullish pressure. In addition to this, the ADX indicator gave a bullish signal 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. Also currently there are no signs opposing this bullish view here as well. So everything looks good here for the bulls and until the bottom of the daily range holds my view remains bullish here and I expect the price to move higher further.
Technical Analysis & Forecast Summary
USDILS D1(Daily) Chart Analysis
- Range, Stochastic Oscillator
USDILS H4(4 Hours) Chart Analysis
- Bullish Divergence, ADX Indicator
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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Happy Trading!
Yordan Kuzmanov
Chief Trader at the Traders Academy Club
