AUD/USD Hesitating at the 50 SMA
Skerdian Meta • 1 min read
AUD/USD has been bearish since early January, after tensions in the Middle East hurt the sentiment, especially for commodity currencies. the sentiment turned extremely bearish after the breakout of coronavirus, sending this pair nearly 400 pips lower during that period.
The 100 SMA (green) turned from support into resistance by the middle of January, then the 20 SMA took that job and pushed the price lower, as the virus spread and the decline accelerated for risk assets. In the first week of this month, we saw a retrace and a move above the 50 SMA (yellow).
But, the downtrend resumed and AUD/USD made some new lows. This week, we are seeing another pullback higher as the sentiment improves and AUD/USD has moved above the 50 SMA again on the H4 chart. Although, the climb seems overdone now and the 100 SMA is approaching, which I think will turn into resistance again.