AUD/USD Gives Up – That’s How Moving Averages Work
Skerdian Meta • 1 min read
AUD/USD finally reached the take profit target today. If you remember, we opened this forex signal last Friday when this forex pair was banging against the 100 SMA (green) on the H4 chart.
As you can see from the H4 AUD/USD chart below, this moving average provided solid resistance on Friday. The buyers tried to break above it several times, but eventually, they gave up in the evening after failing every time.
The 100 SMA worked very well this time.
Yesterday, the USD went through another period of selling and AUD/USD buyers got excited again. They got us worried when they broke above the 100 SMA, but they couldn’t hold the price up there for too long.
So, this forex pair sank below this moving average again, but again the price missed our take profit target only a few pips last night. The buyers had another try at the top side this morning, but this time the top slipped lower as the moving average slipped lower.
This time the buyers couldn’t break above the 100 SMA which was a few hours ago. The 100 SMA pushed the price lower and we reached the TP target about an hour ago. So, we have to thank the 100 simple moving average for this forex trade. Now, let’s move on to the next trade.