AUD/USD has been really bullish since it reversed higher back by the middle of March, following a 12 cent decline in the previous two weeks as a result of the coronavirus breakout in Europe. Since then, the pressure has been totally to the upside and AUD/USD has climbed more than 15 cents.

Moving averages provided some resistance on the way up, but they were eventually broken without much opposition. AUD/USD, climbed up to 0.7060s yesterday, helped by some USD weakness after the dovish press conference from the FED yesterday.

But, we have seen a decent pullback lower on the H4 chart since last night. AUD/USD has lost around 180 pips from top to bottom. The price slipped below the 50 SMA (yellow) on this time-frame chart, but it seems like buyers are coming back now, as this pair pushes back above the 50 SMA. The pullback was deep enough, so we decided to go long on this pair at the 50 SMA. This trade looks good now, since we are well in profit with it.