The bearish trend is very strong in AUD/USD

Commodity Dollars About to Resume the Bearish Trend Again

Posted Monday, October 8, 2018 by
Skerdian Meta • 1 min read

Commodity Dollars have turned pretty bearish in the last two weeks and last week the bearish momentum gained pace, sending them around 200 pips lower. Although, they made a weak retracement during late last Friday on early today, but it seems that they are resuming the bearish move again now.

Other risk currencies such as the Euro and the GBP have turned bearish early this morning as EUR/USD and GBP/USD Have lost around 50-60 pips so far. NZD/USD and AUD/USD seemed reluctant to join them, but in the last couple of hours it seems like the latter two are also resuming the bearish move.

As you can see from the hourly chart above, AUD/USD has been extremely bearish in the last several days and the 50 SMA (yellow) helped the sellers as well. Last Thursday, this moving average provided solid resistance as the buyers were pushing higher.

But, the 50 SMA ended the retrace higher and the bearish trend resumed for AUD/USD. Today we are seeing a similar chart pattern. The retrace higher hasn’t exactly been the same as the last time AUD/USD touched the 50 SMA, but that an even more bearish signal, since the buyers can’t find enough force to form a decent retrace.

At the moment, the sellers are getting control of commodity currencies and we might be lured to open a sell signal, wither in this pair on in NZD/USD which offers a similar picture. After all, I expect the market sentiment to be pretty negative this week as we head towards the EU summit at the end of the week where we will likely see heated debates about Brexit as well as the Italian budget, hence the negative sentiment in EUR/USD and GBP/USD this morning.

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies

About the author

Skerdian Meta is our 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.
Related Articles
Comments

2
Leave a Reply

avatar
1 Comment threads
1 Thread replies
0 Followers
 
Most reacted comment
Hottest comment thread
2 Comment authors
Skerdian Meta Lead AnalystHendry Recent comment authors
  Subscribe  
newest oldest most voted
Notify of
Hendry
Guest
Hendry

I am looking forward to trade but I am failing. Why?