Buying the Pullback in AUD/USD at the 50 SMA
AUD/USD has been on a bullish trend for more than a month, but has retreated lower today to the 50 SMA
[[AUD/USD]] has made quite a comeback since the middle of March, after falling around 12 cents to the bottom, as risk assets crashed lower. All major pairs recovered somewhat after that big decline in March, but the Aussie has been performing best among all major currencies, having claimed back almost all the losses.
The price moved above the moving averages on the H4 chart, breaking them one after the other without much hesitation. Those moving averages turned into support once broken and have been pushing this forex pair higher since then, reaching 0.6560 earlier this week.
Although, yesterday this pair stared pulling back lower. Yesterday we saw some really strange price action, with some currencies surging higher such as the Euro and the GBP, while the Aussie pulled back lower. That was due to some month-end cash flows, I assume.
Today, the pullback has reached the 50 SMA (yellow). This moving average seems to be turning into support now, so we decided to open a buy signal from there. Now let’s see if there will be a reversal from the 50 SMA and the bullish trend will resume again.
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