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07.10.202005:08 Forex Analysis & Reviews: Forecast for AUD/USD on October 7, 2020

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AUD/USD

The Reserve Bank of Australia held a meeting on Tuesday, afterwards it announced a possible rate cut in the coming months to support the economy. Australia's trade balance reached $2.64 billion in August against expectations of $5.05 billion, and as a result, AUD/USD fell by 77 points.

The price reversal occurred from the balance indicator line on the daily chart, which coincided with the reference level of 0.7210, a break above which could have provoked an increase to 0.7270. But the price is already below the lower reference level of 0.7132, so we wait until we reach the nearest target of 0.7065 and for it to also fall to the embedded line of the price channel in the 0.6970 area.

The price lies on the MACD indicator line on the four-hour chart, it is possible that the price might slightly grow before falling to 0.7065, while the signal level of 0.7132 serves as a good reference for this corrective growth.

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