Determined Moving Average

Our forex signal in AUD/USD remains open. We opened it yesterday because this forex pair was retracing higher after the tumble which followed the miss in Australian wages.  

We decided to go short when the pair was making a few pins and dojis on the H1 forex chart. However, a wave of USD selling swept the market around midday and pushed AUD/USD 30 pips higher, where it met the 50 SMA (yellow).  

The 50 SMA keeps pushing the tops lower.

The moving average provided solid resistance and the price turned lower after the positive US retail sales report. The price dipped a pip below our take profit level. Unfortunately, the move was pretty fast, so our servers didn’t quite catch the price and our forex signal missed it.

It looks like this moving average is not going to let go anytime soon. The price has been banging against it all night but the buyers have yet to have any success. At the moment, the market is betting on the USD again as it climbs against most major currencies. Although, if the price sticks around the 50 SMA too long, sooner or later it will let go.

For the moment it is scaring the buyers away, which is a good thing for us. We are trading around the opening price of our AUD/USD signal, so let’s see where the market takes us today. 

ABOUT THE AUTHOR See More

Skerdian Meta

Lead Analyst

Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.

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