Under pressure from external markets (the dollar index rose by 0.20%, oil lost 3.30%), the Australian dollar was unable to settle above the MACD indicator line of the daily scale, although the day was closed with a white candle, and in today's Asian session it is already trying to break through into the support of the local ascending price channel.
The Marlin Oscillator is staying in the positive area, which is helping the price not to fall sharply down. However, the price has another support – a rather strong target level of 0.7171 – further price movement to the lower level of 0.7065 is only possible after the price settles below the target level. The price can return to an upward direction only under one circumstance - when the price goes above the MACD line, above the level of 0.7255. As a result, we see that the price fell into the range of uncertainty at 0.7171-0.7255.
The situation is even more uncertain on the H4 chart. The observed departure under the MACD line can easily turn out to be a false movement if the price turns up from the lower border of the price channel on the daily. If the price turns up from the support of 0.7171, then the price channel will be abolished. Therefore, despite the fact that the price is formally under the indicator lines and the Marlin Oscillator is in the downward trend zone, we can only expect further downward movement after the price settles under 0.7171. An exit above 0.7227 will be the first sign of its intention to develop an attack at 0.7255.
*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.
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