Another Day, Another AUD/USD Sell Signal
Skerdian Meta • 1 min read
Yesterday we didn´t open any forex signals in AUD/USD, although we had quite a few profitable signals in other forex pairs as well as in other financial instruments, such as Gold, Oil, and Nikkei.
But in the last few weeks, we have opened plenty of signals in AUD/USD. The last one closed in profit only yesterday morning.
The reason for all these signals was the weakness in commodities, which translated into weaker commodity currencies.
The weakest link among Com Dolls has been the Canadian Dollar, but the price action there has been wild recently with a lot of whipsaws. This makes it difficult to pick an entry point.
So, we preferred to trade AUD/USD instead and we just opened another sell signal here. We could have picked NZD/USD since this is another forex pair which has been in a downtrend lately.
But the downtrend here is not as steep as the downtrend in AUD/USD and the pullbacks haven´t been as large, which means that the chances of us having a successful signal are higher than in NZD/USD.
Looks like the retrace is already over
If you compare NZDUSD and AUD/USD charts, you can see that this latest pullback has brought the first pair near this week´s high, while AUD/USD has only claimed half of this week´s losses.
All the moving averages are still above the price in AUD/USD. This is likely to provide solid resistance. On the other hand, NZD/USD has breached all MAs apart from one, so the chances of AUD/USD returning back lower are greater, hence our sell forex signals here.