AUD/USD has turned bullish today during the Asian session and the beginning of the European session as the market sentiment improved. The sellers failed to break below the 200 SMA (purple) on the H4 chart last Friday and the AUD/USD bounced off of it.

It climbed more than 50 pips this morning, but it reversed down a few hours ago and it looks like it wants to resume the bearish trend now. The price is close to the opening price of our forex signal; remember, we have a sell signal in AUD/USD which we opened last week.

But, there is a problem for the sellers and for our signal. The moving averages which we were counting to provide resistance on the way up now stand in the way of AUD/USD moving lower. The 50 SMA (yellow), the 100 simple MA (green) and the 100 smooth MA (red) stand just below and they are now providing support.

Resistance levels tend to turn into support in such cases, so this will be a bit difficult for the sellers. The stochastic indicator is also almost oversold now so the bearish move of the last several hours is a little exhausted. Perhaps, the sellers will have to resume the move tomorrow if they decide to keep pushing, or maybe the US traders will provide some volatility and overcome these moving averages, although we can’t do much now except wait and watch.