AUD/USD Forecast : Technical Analysis Key Trends and Insights for Future Market Moves

Start by analyzing from the weekly timeframe. Here, AUD/USD is at resistance, moving towards support in a clear downtrend. The weekly chart provides a big-picture view of the market's overall trend and direction, and spotting key support and resistance levels here gives insight into potential price reversals or continuations. Since the market is in a downtrend, we are preparing for a sell opportunity as the price heads towards the support zone.

Next, move to the daily chart. The daily chart confirms the downtrend with the formation of lower highs and lower lows, reinforcing the idea that the sellers are still in control. This timeframe helps to confirm the overall trend seen on the weekly chart while also providing more detail on price behavior. The consistent pattern of lower highs and lower lows is a strong signal that the market is likely to continue moving downward.

After the daily chart, check the 4-hour chart. This chart is still showing the same downtrend structure, reinforcing the idea of a sell position. The 4-hour timeframe provides more refined details and allows you to spot potential entry points while still maintaining alignment with the larger timeframes. By confirming that the downtrend persists across these timeframes, you strengthen your trading plan and reduce the risk of entering against the market's momentum.

Before entering the trade, take a closer look at the 1-hour chart. This timeframe aligns with the weekly, daily, and 4-hour charts, showing strong momentum towards a sell position. The 1-hour chart adds a more detailed view of price action and helps identify the precise moment to enter the trade. If it continues to make lower highs and lower lows, it indicates that the sell opportunity is still valid.

Now, for your entry, switch to the 15-minute or 5-minute chart, which is ideal for pinpointing the exact moment to enter a sell position. On this timeframe, look for an aggressive supply zone, where sellers are likely to step in and push prices lower. If you spot a clear lower high and lower low pattern on this short-term chart, this confirms that the sell momentum is still intact. You can place a sell limit order at the supply zone to enter the trade at a favorable price.

Finally, aim for a 1:3 risk-reward ratio for your scalp trade. This means your potential reward is three times your risk, ensuring that even if the trade doesn’t go as planned, your overall profitability remains high over time. This approach to risk management is essential for long-term success in trading, as it limits losses while maximizing gains.

By following this multi-timeframe analysis—from the weekly down to the 15-minute or 5-minute chart—you ensure a thorough, data-backed decision-making process. This approach increases accuracy and gives you a clear edge in the market, allowing you to take high-probability trades that align with the overall market trend.

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