Yesterday we opened a sell forex signal in AUD/USD, one of many we have opened in this forex pair over the past month or so.
At some point, I was getting worried about the forex signal because the retrace higher was getting out of hand. The buyers kept pushing higher all day yesterday and the 50 and 100 SMAs were breached on the H1 forex chart, so our defense levels were giving up.
But at some point, the price turned back down and the 20 SMA on H4 chart held strong, despite being breached for a short period. Closing below the 20 SMA and forming an upside down hammer was a strong signal that this pair was going to turn back down, which it did.
But our take profit was a bit too far to be reached yesterday, so we needed another factor to push it further down. Thankfully, the RBNZ (Royal Bank of New Zealand) came to our rescue.
The RBNZ statement was neutral last night, but I suppose the market was expecting some hawkish comments, considering the better economic conditions recently. Just like in Canada, the RBNZ dismissed all positive indicators and remained neutral, which wasn´t what the market was expecting.
We´re back at the 20 SMA
So, the NZD dived about 150 pips last night and it pulled the AUD down with it. Our AUD/USD signal hit take profit in no time, thank you RBNZ.
Right now, AUD/USD is back at the 20 SMA and we opened another sell forex signal. Let´s hope the downtrend continues in commodity dollars.
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