Getting Ready to Buy the Pullback in AUD/USD, As the Trend Remains Bullish
Skerdian Meta • 1 min read
AUD/USD turned bullish in the first two weeks of this month, as the USD turned bearish, on softer US ISM manufacturing report, which showed that this sector fell deeper in contraction during November. The upside momentum faded and in the third week this pair retraced lower.
But, the sentiment improved further after US and China agreed on Phase One deal, helping risk assets, such as the stock markets and commodity Dollars. As a result, AUD/USD has been bullish for about a week. The uptrend has been pretty straightforward.
The price has leaned on the 20 SMA (grey) on the H1 chart, which has been providing support on pullbacks and pushing the price higher. This shows that the trend is pretty strong. We saw a climb earlier today, but the price has reversed now and it is slipping lower. We are following it and will try to open a buy trade around the 20 SMA, but only after we get a bullish reversing signal, such as a pin/doji candlestick.