Forecast for AUD/USD on July 12, 2021

AUD/USD

The Australian dollar formed a 59-point white candlestick on Friday, covering the previous day's decline. This is a sign of a likely high correction, but it also has signs of limitation and weakness.

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These features include: the wedge-shaped structure of the Marlin oscillator on the daily chart - more often the signal line exit from such formations in the direction of the main trend, in our case to the downside, this is also a strong resistance of the embedded price channel line around the 0.7524 mark, as well as the proximity of the signal line oscillator to the border of the growth area. A downward reversal may occur from this border, from the zero line. In this case, the wedge will transform into a regular channel with parallel borders, and the price will exactly reach the line of the price channel at 0.7524. Consolidating above 0.7524 opens the target at 0.7618. The market will need at least one and a half days for such a consolidation.

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The price went above the MACD indicator line, while Marlin moved into the growth area on the four-hour chart. Further upward movement will indicate an attempt to attack 0.7524. Consolidating below the MACD line (0.7472) will be the first sign of a return to the target level of 0.7410 that was reached on Friday, as well as an attempt to surpass it.

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

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