Selling AUD/USD at MAs, As They Turn From Support Into Resistance - Forex News by FX Leaders
The retrace higher seems complete on the H4 chart

Selling AUD/USD at MAs, As They Turn From Support Into Resistance

Posted Tuesday, August 4, 2020 by
Skerdian Meta • 1 min read

AUD/USD has been really bullish during the last several months, since it turned bullish by the middle of March. During this time, AUD/USD gained around 17 cents from the bottom, as the sentiment improved while moving average were providing support on pullbacks, pushing the trend higher.

The 20 SMA (grey) and the 50 SMA (yellow) were holding the pullbacks for this pair when the trend was strong, then when the trend picked up pace, the 100 SMA took up that job, such as yesterday, when the decline stopped right at this moving average.

The price bounced back up from the 100 SMA overnight and gained around 70 pips, but it seems like the 20 and the 50 SMAs have now turned into resistance for AUD/USD. These moving averages have been providing resistance during the last few hours, while the pullback higher is complete.

So we decided to open a sell forex signal below these moving averages on the H4 chart. Sellers are trying to push lower again, but there is a battle going on between them and the buyers right now. We hope that sellers will win this battle, so we can pocket 30 pips from this trade.

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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.
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