Another Forex Trade in Sight
Skerdian Meta • 1 min read
The same as NZD/USD, we have seen an uptrend form this week in the Aussie. AUD/USD started reversing higher on Monday morning and today it was around 200 pips higher from the bottom, at some point.
The bigger trend hasn’t changed and it is still bearish, but the short term trend is up, until it turns back down. In the last few hours though, this pair has retraced lower which has opened up a trading opportunity for AUD traders.
The resistance has now turned into support
Resistance turns into support
The area around 0.7650 used to be resistance two weeks ago. It got broken yesterday and it immediately turned into support, that’s what usually happens with support and resistance levels.
But besides the resistance which has now turned into support, we can also find the 50 SMA (yellow) at the 0.7650 level. Moving averages are another great indicator to provide support when needed, so the chances are that the 50 SMA will add more strength to this level.
The stochastic indicator is oversold as well on the H1 forex chart. The stochastic usually signals overbought and oversold levels and this time frame chart looks oversold now. This means that the retrace lower is almost over. So, we’re looking to buy at the 50 SMA with a stop below.