Buying the Pullback in AUD/USD - Forex News by FX Leaders
Let's see if MAs will hold as support

Buying the Pullback in AUD/USD

Posted Thursday, April 16, 2020 by
Skerdian Meta • 1 min read

AUD/USD crashed around 12 cents lower in the first half of March, as the coronavirus fears sent the USD surging higher as a world reserve currency. As a result, this pair tumbled lower, like most risk currencies did. But, the sentiment improved somewhat, after governments and central banks started pouring money into markets like never before.

The USD reversed lower, while risk assets retraced higher, as seen from the stock markets which have been climbing higher in the last month or so. AUD/USD climbed nearly 10 cents higher from the bottom since mid March and the picture seems pretty bullish now.

Although, the USD has gained some momentum in the last several trading sessions, as Crude Oil prices turned lower again, trading near the bottom which was put in place last month. As a result, we have see a pullback in this pair during the last few days, which seems weak, but it’s enough to refresh the charts. The 100 SMA (green) and the 50 SMA (yellow) are providing support on the H4 chart, se we decided to go long on AUD/USD, since it is also overbought now.

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies

About the author

Skerdian Meta // Lead Analyst
Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.
Related Articles
Comments

Leave a Reply

avatar
  Subscribe  
Notify of