Buying AUD/USD at the 100 SMA

[[AUD/USD]] has been the most bullish among major currencies, climbing more than 12 cents higher and claiming all the losses from the first two weeks of March when risk assets tumbled lower. The other currencies haven’t recuperated all the losses from back then.

AUD/USD climbed above the 70 level earlier this month, reaching 0.7060s. But, the climb ended and this pair retreaded back down, falling nearly 300 pips. Sellers broke the 50 SMA (yellow) on the H4 chart, but the 100 SMA (green) held pretty well as support.

AUD/USD bounced off that moving average and pierced the 50 SMA again, but buyers were not able to break the 50 SMA this time. The price formed a doji candlestick on this time-frame, which is a bearish reversing signal and turned down again. Now, AUD/USD is back at the 100 SMA where we decided to go long, hoping for another bounce higher soon.

ABOUT THE AUTHOR See More

Skerdian Meta

Lead Analyst

Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.

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