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.

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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.

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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