Shorting Aussie on Two Charts
Skerdian Meta • 1 min read
It’s just one signal, but we’re basing it on bearish setups in two timeframe charts. We just opened a sell forex signal in AUD/USD which we mentioned in the midday brief before opening it.
The bearish setup in the H4 chart is pretty visible as we explained in the brief. The trend has been down, and the previous support and the 100 SMA (green) are providing resistance on top. Also, the stochastic is heading down, so we’re good on the H4 chart, technically.
We also took a look at the H1 chart before opening that forex signal. It’s a short-term signal, and we must look at the smaller timeframes, too.
AUD/USD is stuck between two moving averages on the H1 chart.
As you can see, the price is stuck between the 100 smooth MA (red) at the bottom and the 200 smooth MA (purple) on top. The stochastic indicator is almost overbought, and the price is closer to the top of the range, so the normal reaction would be to sell near the top.
Besides that, the previous hourly candlestick closed as a doji, which is a reversing signal after an uptrend, the uptrend of the last few hours. So, there are three bearish indicators on the hourly chart apart from the ones we highlighted in the H4 chart. That’s more than enough. Now we just need this pair to move the down.