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Forecast for AUD/USD on July 8, 2020

AUD/USD

The Australian dollar fell by 70 points yesterday in the morning due to the introduction of a re-quarantine in Melbourne due to the onset of the second wave of coronavirus infection. However, investors were so keen on beating the US dollar that, despite the fall in the stock market (Euro Stoxx 50 -0.85%, S&P 500 -1.08%), the main currencies returned to growth, including the Australian dollar. It wasn't until late in the evening that the bears took over. As a result, the aussie fell by 26 points. The Reserve Bank of Australia meeting, being neutral on the results, did not affect the exchange rate.

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The signal line of the Marlin oscillator lies on the border of the negative trend zone on the daily chart, the 1.7080 target (July 19 high) can be reached within the next day. Next, we expect growth to continue in the target range of 0.7190-0.7225, since it is very likely that the price and the Marlin oscillator are preparing to form a triple divergence, and the distance between the oscillator and the forming line is still significant.

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The price found support on the balance line on the four-hour chart, which indicates that the trend is under strict control of buyers. The Marlin oscillator fluctuates at the border of trends. In general, the 0.6923/79 range, determined by the local extremes of yesterday, is an area of uncertainty. The exit of the price above its upper limit will give the price the opportunity to continue growing to 0.7080, leaving the price below 0.6923 will allow you to test the strength of the MACD line in the area of 0.6892. Consolidating at 0.6892 will reveal the market scenario for a decline to 0.6680.

The material has been provided by InstaForex Company - www.instaforex.com