Forecast for AUD/USD on March 20, 2020

AUD/USD

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.

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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.

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