Forecast for AUD/USD on October 9, 2020

AUD/USD

The Australian dollar is showing brisk growth for the third day, and if it settles above the 0.7190 level, which is the extreme on September 9, August 13 and July 22, it may continue to rise to the target level of 0.7270. But along with this, the price must also go beyond the area above the nearest peak on October 6 in order to confirm the first signal for a short-term rise. The signal line of the Marlin oscillator is approaching the border of the growth territory (to the zero value of the indicator), therefore, the line could reverse from this, and drag the price along with it. The price itself remains below the red balance indicator line, which allows us to consider the reversal scenario as the main one.

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The price is also below the balance indicator line on the four-hour chart, this is a sign of the corrective nature of the price growth. Marlin is exactly on the zero line, this moment increases the likelihood of a reversal of both the oscillator itself and the price. A firm condition for a mid-term decline is when the price settles below the MACD line (0.7110). We are waiting for the development of the situation, either a short-term growth or medium-term decline will confirm any scenario.

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