The AUD/USD Signal Is Looking Good - Forex News by FX Leaders

The AUD/USD Signal Is Looking Good

Posted Monday, January 30, 2017 by
Skerdian Meta • 1 min read

A while ago, we opened a buy forex signal in AUD/USD. If you look at the comments box, I wrote a line saying that the 50 simple moving average (50 SMA) on the H1 forex chart is providing solid support.

But that´s not the main reason why we opened the AUD/USD signal. It´s true that moving averages are very strong technical indicators and, right now, the price has just moved above the 100 SMA in green as you can see from the AUD/USD chart below.

The stochastic indicator was heading up as well when we opened this signal, but that´s not the main reason either.

This pair slipped 10 pips lower while I was writing this update but our signal still looks good. 

The main reason is price action. Looking at the AUD/USD chart, we see that this forex pair has little change since the Asian markets opened. Compared to the other major forex pairs, the Aussie seems to be the most resilient major currency.

So when this morning USD retrace is over, AUD/USD will be the most likely pair to jump higher. The caveat now is whether the USD retrace will be over soon or continue and turn into a USD uptrend.

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About the author

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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