Forecast for AUD/USD on August 2, 2021

AUD/USD

The Australian dollar dropped 52 points last Friday, bouncing off the resistance at the 0.7399 signal level. On the daily scale, the signal line of the Marlin oscillator turned down from the upper border of the narrowing channel and there was a risk of the signal line going down from the channel, which would result in forming a double convergence of the price with the oscillator.

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But at the same time, the price also reverses upward from the embedded price channel line, Marlin is holding the upward trend, which indicates the potential for another attack on the upper edge of the wedge. Consolidating above 0.7399 opens the target at 0.7485 - the upper embedded line of the price channel.

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The technical picture on the 4-hour chart does not provide clues as to price direction. Formally, the trend is downward, since the price is below the indicator lines and the Marlin oscillator is in negative territory, but the main sign of a decline in the current situation is the price settling below the signal level of 0.7332, after which we wait for the price at the lower border of the price channel at 0.7277.

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

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