Booking Profit on AUD/USD - Forex News by FX Leaders
MAs keep pushing AUD/USD down

Booking Profit on AUD/USD

Posted Friday, February 28, 2020 by
Skerdian Meta • 1 min read

AUD/USD has turned bearish since early this year. Tensions in the Middle East, and then the outbreak of coronavirus proved to have a bigger impact on markets, than the Phase One trade deal. Since then, the trend has been completely bearish, as the sentiment remains strongly negative.

During this time, moving averages have been doing a great job in providing resistance and pushing this pair down. AUD/USD has lost around 500 pips since early January and it doesn’t seem like the decline is going to stop anytime soon, not as long as coronavirus spreads, especially in East Asia.

On the other hand, if the virus spreads further in the US and around the globe, the world economy will likely weaken and the FED will start cutting interest rates again. Anyway, the main trend still remains bearish and MAs are still providing resistance. The 20 SMA (grey) was rejecting the price earlier, so we decided to open a sell signal in this pair. Overnight, the sentiment turned negative again and risk currencies tumbled lower. As a result, we booked profit on this signal.

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies
Related Articles
The broad-based US dollar will end this week on a bullish track amid hopes that the Fed will start tapering its bond purchases as soon as...
2 weeks ago
Comments
0 0 vote
Article Rating
Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments