AUD/USD turned bearish in April and it fell below the moving averages on the daily chart, turned into resistance immediately and they have been doing a great job keeping buyers under control, killing their hopes after every decent retrace higher. The 50 SMA (yellow) took its turn in September and it seems like this moving average is doing so again, as the price starts to reverse down today after the bullish momentum which started last Friday.
AUD/USD Daily Chart – The 50 SMA Rejecting the Price Again
The stochastic indicator is overbought and reversing down
Although yesterday the 50 SMA rejected the price and the daily candlestick closed as a doji, which is a bearish reversing signal after the bullish move. Today the sentiment has turned negative and stock markets opened lower after three strong days, so risk currencies such as commodity dollars are reversing lower as well. We opened a long term sell forex signal earlier here below the 50 SMA, so we’re bearish on this pair for the near future.