We opened our AUD/USD signal earlier today during the retrace in USD pairs. It looked pretty good to go long at that time since this forex pair was already well oversold on the H1 chart.
You might call that action sort of premature and it is right because the price slipped about 25 pips lower in the following hours, but at that time it looked right.
What we must have done though is switch to the H4 forex chart and see that the 50 SMA in yellow is still about 15 pips away. Besides, we know that nothing works like clockwork in forex, so you must expect a 10-20 pip fakeout now and again.
The 50 SMA seems to be holding
The price did pierce below the 50 SMA for a while but now it´s back up and the upside is looking favourable once again. Now even the H4 chart is oversold and the price heading up. Let´s hope that the retrace down is over and the downtrend is intact and this end up being a green forex signal.
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