A while ago we opened a sell forex signal in AUD/USD, if you noticed. If you follow our forex signals you should have received a notification on your phone or on your email. We based this forex trade on three technical indicators and we think that we will have another winning trade after the winning trade in NZD/USD yesterday.

The commodity Dollars have been on a declining trend in the last two weeks. They retraced higher since Christmas and have been on a bullish trend for about a month. But, the main trend is still bearish on the daily chart and this month has already started quite bearish.

This pair has lost around 200 pips since the beginning of the month and the technical picture seems still quite bearish. AUD/USD has retraced higher in the Asian session but the retrace seems complete on the H1 chart. On the H4 chart, we see that the 30 SMA (grey) is providing resistance on top. The 20 SMA rejected the price yesterday and it seems like it is doing the same today.

Besides that, there is a strong level at 0.7080. This level has provided support and resistance before for this pair, which means that AUD/USD traders are aware of it. I did mention the downtrend, so there you have three indicators pointing down – the trend is bearish, the resistance level at 0.7980 and the 20 SMA. Let’s hope that the downtrend resumes again soon.