Bearish reversal pattern in AUD/USD, as RBA gives dovish signals
AUD/USD turned bearish in April and it broke below the moving averages on the daily chart, immediately turned into resistance and they did a great job of keeping the buyers in check, killing their hopes after every decent retracement to the upside. The 50 SMA (yellow) took its turn in September and it looks like this moving average is doing it again, as price begins to reverse today after the bullish momentum that started last Friday.
AUD/USD Daily Chart – The 50 SMA again rejects the price
Stochastic indicator is overbought and reversing
Although yesterday the 50 SMA rejected the price and the daily candlestick closed in the doji, which is a bearish reversal signal after the bullish move. Today sentiment turned negative and equity markets opened lower after three strong days, so risky currencies such as the commodity dollars are also reversing lower. We opened a long-term forex sell signal earlier here below the 50 SMA, so we are bearish on this pair in the near future.