Let’s Hope Our AUD/USD Signal Turns Around When USD Sellers Return
Skerdian Meta • 1 min read
We opened this forex signal last evening when the Buck was going through a pullback period. This forex pair followed a steep uptrend all day yesterday, which was mainly due to USD weakness during the London session.
But then, a pullback followed during the US session and we decided to take this trade for a number of reasons.
One of the reasons was that the Buck has been going through some tough times since the new year, so following that trend would be safer than going against it, particularly yesterday.
The other reason was technical. AUD/USD was oversold on the H1 forex chart at the time we opened this signal. Stochastic and RSI indicators were well within the oversold zone.
Besides that, the price was just above the 20 SMA in grey. This moving average is not the strongest one since the timeframe is pretty small, but they turn into important support and resistance levels during strong uptrends and the uptrend was quite strong yesterday.
The trend is our friend, right?
Besides that, the Aussie was showing the most resilience yesterday in the afternoon during the retrace lower. This means that his pair was most likely to jump higher in case the USD bears returned.
We can see that by comparing the charts of major forex pairs. Looking at them, we can see that this morning the USD is about 30-40 pips higher against most major currencies, while AUD/USD is almost unchanged.
This is encouraging for us since it tells us that there are fewer sellers in this pair than in other majors. Now, all we have to do is wait and hope the next leg of the uptrend takes place soon.