Booking Profit on AUD/USD, As It Bounces Off the 100 SMA

The pullback in AUD/USD is over, as it is bouncing off the 100 SMA on the H4 chart

Written by: Skerdian Meta • Friday, June 19, 2020 • 1 min read

The pullback is over now on the H4 chart

Yesterday we went long on AUD/USD , as it was retracing lower on the H4 chart. The trend in this pair has been bullish since the middle of March, when it reversed higher, following a 12 cent crash lower as the coronavirus outbreak sparked panic in financial markets.

But, the panic wore off eventually, as governments and central banks across the world activated all their credit lines, as well as introducing some new ones. As a result, AUD/USD has been bullish for three months now, also helped by the fact that China was he first country to leave coronavirus behind.

Although, we have seen a pullback lower in the last two weeks, as the USD tries to recuperate some of the recent losses. But, the 100 SMA (green) has been holding well as support, once on Monday and again yesterday. So, we bought this pair down at the 100 SMA hoping for a bounce, which came today and we booked profit on that signal. Now AUD/USD seems to be forming a triangle. Let’s see which was the breakout of this triangle will be, since it is getting pretty narrow.

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ABOUT THE AUTHOR See More

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.