Weekly Forex Forecast Summary 26th August – 2nd September 2022

Hi Traders!, Weekly Forex Forecast Summary 26th August – 2nd September 2022 is here. In this post, I analyze and forecast EURAUD and NASDAQ. EURAUD is expected to begin a turnaround of its bearish trend following weekly and daily bullish divergences. NASDAQ is expected to continue the bearish trend following the bearish hidden divergence on the weekly time frame.A detailed analysis of these two instruments are as follows:

You can watch the video explanation of this forecast here

EURAUD

W1 – On the weekly chart, the price which is moving lower has retested an important low around the psychological level 1.45.
Besides that, we could see that the price starts to build up a bullish divergence based on the MACD and RSI indicator.

 

D1 – Looking at the daily chart, we could see that the price has created two false breakouts in a row. Also, we should note that these false breaks are created with the pressure of bullish divergence based on the MACD and RSI indicator.

In addition to this, we have an engulfing candle pattern that has formed. Generally engulfing with false breakouts and divergences is a very strong technical sign.

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H4 – On the H4 chart, we could see that the price has created the last leg with three lower highs, lower lows pattern, completing with a false breakout and a bullish divergence on the MACD histogram indicator (Slipping from negative to positive to negative and making a bullish turn around).

The way it looks right now, based on all the above-mentioned technical conditions, the price might be ready for the further bullish continuation here after pullbacks.

NASDAQ

Note: This is a follow up to the Weekly Forecast video which I published on August 7th 2022, You can watch it here

W1 – My plan here was to expect the price reach the highs shown in the image below and from there building a bearish hidden divergence. The price action moved exactly as I expected it to here with the histogram flipping from positive to negative to positive zone, and all that is happening on a key monthly volume area.

Also, we could see that the last two candles we have here are massive bearish ones and they go below the low of the last two bullish candles. This is a very strong sign favoring the bears.

Besides this we can see that the price has created a bearish trending structure with a sequence of lower highs, lower lows followed by a rally which was blocked on a beautiful resistance area. In addition to this, we also have a bearish hidden divergence that has formed based on the MACD indicator (lower highs on the chart and higher highs on the indicator).
So, the way the price action behaves generally in such cases is we may expect potential trend continuation until it will be blocked by a bullish divergence.

D1 – There are two possible scenarios here, the price might move lower directly as shown in the image above. Or alternatively the price might create one more high to complete the double wave and then the price might move lower further. If the price creates one more high then we may expect a possible bearish divergence to follow with a fake high and then the price might drop further.

As long as the area shown in the image below(marked in red) holds I expect bearish continuation in NASDAQ.

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