Forecast for AUD/USD on August 7, 2020

AUD/USD

The Australian dollar reached the target level of 0.7240 for the second time on Thursday. The first time this level was tested was on Wednesday. Now a four-fold price divergence with the Marlin oscillator has formed on the daily chart. We have not seen such a formation for any currency over the past ten years. This is a strong reversal pattern. Accordingly, we are waiting for the price to overcome the nearest support of 0.7190, then move towards 0.7070 with an attack on the MACD line (blue indicator).

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Due to the second test of 0.7240 with the Marlin Oscillator, a divergence has formed on the four-hour chart. This strengthens the overall descending vector. MACD's line coincides with the 0.7190 level, which increases its significance. The price overcoming such a level will be a strong signal for a decline further. The nearest target is 0.7070.

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