Forecast for AUD/USD on March 20, 2020


The Australian dollar noted the support of the closest embedded line of the downward price channel of the higher timeframe and sharply turned up on Thursday, blocking a 280-point decline within the day. The reason for the initial strong decline was an emergency lowering of the RBA rate from 0.50% to 0.25%, but the market got tired of falling by 11 figures in the last nine days and made a technical correction. The highest correction is seen at the level of 50% of the entire 9-day fall, at the 0.6100 level. The correction may be completed in the region of 38.2%, that is, near yesterday's peak. After the correction is complete, we expect the Australian dollar to decline to the new target of 0.5395 - to the high of August 2001.


On the four-hour chart, the signal line of the Marlin oscillator quickly went from being oversold into growth territory – to the zone of positive values. This is a good signal for a further correction to develop, that is, it is more likely to be deeper, so we are focusing on 0.6100.


The material has been provided by InstaForex Company -