One In the Pocket, Another One to Go
Skerdian Meta • 2 min read
So, that EUR/USD signal finally hit take profit. I was worried about it because at some point, it reached as high as 1.0798 which is a lot closer to the stop loss target than the take profit one. However, the 1.08 support/resistance level proved strong enough to discourage the buyers.
If you noticed, I posted a comment last night at around 3am GMT about that forex signal, pointing out the hurdle that EUR/USD bulls were going through during the Tokyo trading session.
Anyway, that´s history now but another signal became active overnight. Before hitting the bed, I left a pending order. I placed a buy pending signal in AUD/USD at 0.7664.
That level looked particularly attractive last night as this forex pair was going through a pullback period after the last push north last Friday when the US average earnings (wages) figures let down expectations.
The 50 SMA in yellow was providing some decent support. It managed to hold on for quite a while, but it had to let go this morning when London traders entered the market.
Hope the price moves above the 50 SMA again.
That came from the USD side because the Aussie is holding up pretty well, much better than some of its peers, such as the Euro and the Yen, which have lost 50-60 pips this morning.
That in itself is a good thing for our signal because it means that when this retrace in major forex pairs is over, this forex pair would be the first to rally higher. That´s what this morning´s price action has been telling us so far.
The H1 forex chart is severely oversold, so that´s another plus for our AUD/USD signal. However, the H4 chart shows that this pair is heading down. Well, let´s hope the big guys are looking at H1 chart so the turnaround doesn't take long.