Moving averages doing their job – The AUD/USD sell forex signal closed succesfully
During the first three days of last week, the New Zealand Dollar surged after the Bank of New Zealand left the interest rates unchanged and killed any hopes for a future short-term rate cut. That pulled the Australian Dollar up and by the early hours of Thursday morning it was about 300 pips higher against the US Dollar. But that was it because on Thursday and Friday the commodity dollars started to reverse.
The 50 MA on the H1 chart provided solid resistance
So, the commodity Dollars entered a downtrend period on Thursday and Friday and yesterday, AUD/USD made a retrace up on the hourly chart to the 50 moving average (MA) in yellow at around 0.74. The 20 MA was sitting around the same level on the H4 chart. So our forex strategy was clear, three indicators were signalling the same thing, sell AUD/USD. The stochastic was overbought on the hourly chart, the 50 MA was providing resistance on the H1 forex chart and the 20 MA was providing resistance on the H4 forex chart. It worked well and we had two short term winning forex signals in this pair.
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