Forecast for AUD/USD on May 8, 2020

AUD/USD

The Australian dollar gained 98 points yesterday thanks to a general weakening of the US currency and optimistic data on the Chinese economy. China's trade balance in April showed growth from 19.9 billion dollars to 45.3 billion against the forecast of 9.1 billion. The trade balance of Australia showed an increase from 3.87 billion dollars to 10.60 billion in March. On such a fundamental positive, the aussie's growth can continue to the 0.6665 level (September 2019 low, December 2018 low), but then a double divergence will form on the Marlin oscillator on the daily chart, which will soon turn the price down.

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The price is completely in an upward local trend on four-hour chart, but its reversal can occur when the price goes below the signal level of 0.6508, this is support for the embedded line of the price channel on the daily chart.

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One can speak of a change in the trend only when the price decreases under the MACD line on the scope in question (0.6430). In this case, the target opens along the MACD line at the daily scope of 0.6260.

So, we are waiting for the Australian dollar to grow to 0.6665. Data on US employment will be released in the evening, which carry the risk of a high speculative component.

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