Buying the Pullback in AUD/USD at MAs

AUD/USD has retraced lower today, but MAs are holding as support

Skerdian Meta•Friday, February 12, 2021•1 min read

AUD/USD was really bullish last year, increasing from around 55 to above 78 by the first week of January. Moving averages were doing a great job on the H4 chart during that time, as shown above, but they were broken during the pullback lower.

The price slipped below these MAs later in January and the 50 SMA (yellow) turned into resistance for some time, before the bullish trend resumed again. This week, the price moved above the moving averages as the USD resumed the decline and buyers came back again.

Today we saw a slight pullback down, which took AUD/USD 50 pips lower to the 20 SMA (grey) on the H4 chart, which is providing support. On the H1 chart above, the 100 SMA (green) is acting as support and the price is starting to bounce off this moving average now, so we decided to open a buy forex signal since the main trend is bullish and the retrace lower seems complete.

AUD/USD is bouncing off the 100 SMA now

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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.