AUD/USD Bouncing Off the 20 SMA?
Commodity dollars have been on a bullish trend for a long time now, as the flowing of cash from central banks and governments is keeping the risk sentiment positive in financial markets. The USD also continues to decline, which is fueling the bullish move in these currencies.
AUD/USD has also been increasing, following a consistent bullish trend. Earlier this week we saw a pullback down on this pair, as the USD gained some momentum, but the decline ended quite soon and the price reversed higher, remaining bullish since then.
The 20 SMA (gray) has been acting as support and resistance on the H1 chart in previous weeks and it seems like it is doing that again now. After a small retreat in the last few hours, the decline stopped at the 20 SMA and a doji candlestick formed above it, which is a bullish reversing signal. My colleague Arslan opened a buy forex signal at the 20 SMA after the bullish reversing chart setup, so we are long on this pair.
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