Same as other forex majors, AUD/USD made a strong move north last Friday. But today it has come to its senses and has traded throughout the day, apart from a couple of quick spikes on the downside. Although, those spikes don’t count as a break of the 100 smooth moving average (red) which lays on the downside, because the price has climbed back above pretty quickly.

AUD/USD is turning lower

So basically, AUD/USD is stuck between the 200 smooth MA (purple) on top and a number of moving averages on the bottom. The 100 smooth MA (red) is the most prominent one at the moment since it is keeping the sellers in check, but the 50 (yellow) and 100 (green) simple MAs should also provide some form of support if the 100 smooth MA lets go.

The hourly forex chart is overbought and the stochastic indicator looks like it is about to turn lower. If this forex pair breaks lower, that would be great for us since we have a live forex signal in NZD/USD and we know these two pairs are closely correlated.

AUD/USD is slipping lower as I speak and NZD/USD is slipping lower as well. Our forex signal in that pair is about 20 pips in profit at the moment, so we’re on the right track today, after having four winning signals thus far.