AUD/USD has been bullish since the middle of March, when it turned around, following the massive crash in the previous two weeks. The uptrend was quite strong until the beginning of June, but since then, AUD/USD has been consolidating inside a range.

Yesterday the range was broken, as the USD turned massively bearish, while risk assets such as commodity dollars turned bullish, after the EU approved the coronavirus recovery fund, worth EUR750 billion. AUD/USD jumped higher and it climbed around 200 pips in total.

This forex pair climbed to 0.7182 yesterday, but started retracing down during the US session. It fell around 40 pips lower, but the price was finding support at the 20 SMA (grey) on the H1 chart. AUD/USD formed a couple of hammer signals, which are bullish reversing candlesticks, so we decided to go long from there.