Buying the Retrace Down in AUD/USD
Skerdian Meta • 1 min read
Commodity currencies have been on a strong bullish trend since the middle of March, following the coronavirus crash back then. The AUD/USD climbed from around 55 to 74.14 at the end of August, but it retreated lower in September and October, as the USD recuperated some of the losses.
But, the retrace down ended in November, and after the US elections, the USD turned massively bearish again, forcing this pair to resume the bullish trend. During this time, moving averages have been doing a good job as support indicators in all time-frames.
On the H1 chart, the 200 SMA (purple) and the 50 SMA (yellow) have been pushing this pair higher this month. The 200 SMA took its turn when pullbacks were deeper. Today it seems like the 50 SMA has turned into support, after the upside picked up momentum in the second half of this week. This moving average is holding the pullback, which seems complete on the H1 chart. My colleague, Arlsan, opened a buy forex signal here earlier, so we are long already in the AUD/USD.