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Forecast for AUD/USD on August 28, 2020

AUD/USD

Yesterday, the Australian dollar followed the euro's wide-range fluctuation due to Federal Reserve Chairman Jerome Powell's speech, who presented the central bank's new attitude towards inflation and employment, but that hesitation was, of course, a more modest 70 points. However, this was enough to show a new local high and almost reach the target level of 0.7296 to form a six-fold divergence with the Marlin oscillator on the daily chart.

analytics5f487882634d0.jpg

It is possible that the price will once again try to approach the target level of 0.7296, although there are no external reasons for this. Oil is falling (-0.20%), iron ore (-0.14%), agricultural futures, and the dollar index rose by 0.13% yesterday. It will be easier for the aussie to decline to the nearest support of 0.7196 – to the MACD line on the daily chart.

analytics5f4878855a27d.jpg

The price is in an upward trend for all indicators on the four-hour chart. There is only one sign of a potential reversal – a weak divergence on Marlin. But if we do not expect the price to rise, then the reversal will not be quick, one or two days, which means a sideways movement of the aussie, at least today.

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