Forecast for AUD/USD on August 5, 2020

AUD/USD

The Australian dollar gained 36 points yesterday thanks to the general weakening of the greenback - the US dollar index lost 0.28%. The price approached the lower border of the target range of 0.7190-0.7225 this morning.

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The signal line of the Marlin oscillator has turned up, but not so much as to stimulate the price to create a fourfold divergence. The reversal scenario for the Australian currency will remain in effect until the price leaves the target range of 0.7190-0.7225 up, followed by a medium-term decline.

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The price is trying to gain a foothold above the MACD indicator line with the support of the Marlin oscillator on the four-hour chart, which has already moved into the positive zone. It will be very difficult for the price within the target range even if it continues to rise above the 0.7225 level. Opening long positions in it is associated with increased risk. The first signal for the downward trend recovery will be the price consolidation below 0.7150.

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