AUDCHF Currency Symbol Technical Analysis H4 Timeframe
Our AUDCHF chart in the H4 timeframe shows the rapid and continu
ous decline since last month. The areas the currency symbol has currently hit are the lowest since the summer of 2015. The high resistance on the H4 timeframe is 0.695 while the next area of support is less visible. However, recent events where AUDCHF hit 0.655 in July 2015 may suggest that the current area is a tested support area.
Technical indicators for AUDCHF currency symbol H4 timeframe
The combination of the Bollinger Bands 20 indicator with the moving average indicators 50, 100 and 200 results in a sell signal. The moving averages of 50 and 100 show that the price hit the last month’s end line. The moving average lines 100 and 200 should be monitored during the coming period. As price crosses and breaks the moving average lines, momentum can continue to depress. While watching the 0.673 level, it coincides with two small candles from last Friday. As well as having a 38.2% Fibonacci retracement area.
The Bollinger Bands (20, 0, 2) have expanded significantly since late last week, especially since there was a big bearish candlestick last Thursday evening GMT. This suggests that volatility may remain higher than it was in the first three weeks of July. The Slow Stochastic (15, 5, 5) clearly shows that the currency symbol is oversold.
The MACD indicator (12, 30, 9) generally supports the negative picture, and the MACD indicator is one of the main technical indicators that shows that the price is oversold or overbought.
Price and Fibonacci Behavior
The recent price behavior of AUDCHF in the H4 timeframe suggests some buying demand and the possibility of a price rebound from below. Relatively large tails clearly appeared on the Japanese candles this week, along with the Doji patterns that clearly appeared last Friday. However, you will have to wait for the closing and opening of the new period to be confirmed.
The Fibonacci zones here are based on the general downward movement since mid-July. As mentioned earlier, the value of 0.673 is probably the most important area. It is tied to the 38.2% Fibonacci area and it is also possible for the price to hit the 23.6% Fibonacci area as it may be a resistance area.
important data points
Tomorrow morning it will be very important for the Australian dollar. The trade balance for June will be announced. The Reserve Bank of Australia will also meet to set the interest rate. Most forecasts assume that there is no further cut at this time and that the interest rate will remain at 1%. However, traders should be prepared for very high volatility tomorrow morning at 4:30 GMT.
Summary of the technical analysis of the AUDCHF
Technical indicators of the currency symbol AUDCHF in the H4 timeframe generally suggest that the price is calmly going down. In addition, further losses and disadvantages are to be expected and possible. There may be a rebound soon, but in any case, traders should watch out and beware of tomorrow’s Reserve Bank meeting, which could change the technical outlook in general.
How to Trade When the Market Reverses Your Trades: Quick Practical Solutions
Trading the Forex market always requires flexible thinking that is compatible with the flexibility and variables of the market. How many times have you been sure of your technical or fundamental analysis and the trend suddenly changed and trades turned into floating losses or a reversal of capital? There is no doubt that many traders in the forex market have had this experience when the market reversed more than once, but there are those who quickly lose their trades due to mistakes that could have been avoided.
This article will teach you what to do in the event of a market reversal and explain the best methods of dealing with losing trades and the impact that trading in the Forex market will have on your capital.
Use take profit and stop loss orders to avoid reversals
Opening a business in the Forex market is like surfing a sailboat, the components of that boat should be (Capital Management – Setting The Goal – Setting Stop Loss) When the waves are strong and the wind is strong (it’s time for big news ).
If the deal is without a goal, it means that the price can exceed the stated profit range and reverse again, and when the deal is without a stop lossThis makes the business vulnerable to a large reversal and consequently the loss of the trading account. Making sure you set a goal and a stop loss is a management technique that a successful forex trader follows.
In this case, don’t use Boost or Cool for deals
In the event of a variable loss, if there are trades and the “current value” is less than 50% of the value of the balance, it is preferable not to enter into any consolidation or cooling contracts of the losing trades in order to avoid further reversals, which in turn leads to that the account reaches the stop-out faster.
Example: If you have 3 losing long positions on the currency symbol EURUSD and the “balance” is USD 1,000 and the “equity” is USD 400 due to the variable loss. It is best not to think about long positions in the EURUSD currency symbol so that the value of the variable losses is not multiplied if the market continues to reverse.
Hedging is a good option, but with conditions
If the open positions are losing and the market continues to reverse, the option to hedge or hedge is a good decision unless the currency symbol has hit a top, support, or trend and the market is expected to reverse.