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Forecast for AUD/USD on August 21, 2020

AUD/USD

The Australian dollar's first attack on the support of 0.7110 failed yesterday. The price stopped on the MACD line of the daily timeframe. At the moment, the price continues to slightly adjust up, in accordance with the general mood of the market. The market sentiment is neutral, that is, the main commodities are in narrow consolidations.

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The AUD/USD consolidation range is the same - 0.7110-0.7240. And since the indicators present in our study remain the same, we are waiting for another attempt to overcome the lower limit of 0.7110 consolidation. Next, we expect the pair to decline to the target level of 0.6975.

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The price went over both indicator lines on the four-hour chart – the red balance line and the blue MACD line. Thus, the balance of market sentiment has shifted towards growth.

The signal line of the Marlin oscillator has reached the border of the growth territory and is turning down from it. It is likely that the price only briefly moved above the MACD line, using it as a consolidation level. If so, the sideways movement of the price will continue all day. Given this circumstance, simply settling the price under the MACD line (0.7182) may not be enough for a confident breakout. We are waiting for the price to drop below 0.7110.

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