The Australian dollar added 30 points on Monday thanks to the overall weakening of the US dollar (-0.37%) and the growth of commodities: iron ore 1.80%, copper 2.12%, oil 0.34%. Values may continue to increase for some time on growing risk appetites, but we do not expect any long-term trend – the second wave of coronavirus infection is developing in the world.
The signal line of the Marlin oscillator has entered the growing trend zone on the daily chart, and it is very possible that a triple divergence of the oscillator will be formed with the price. This is a strong reversal pattern. To form such a divergence, the price needs to enter the target range of 0.7190-0.7225, this range is formed by the extremes of February, April and July 2019, August 2018. The aussie's first goal is the July 2019 high at the price of 0.7080. Overcoming this level will allow the price to reach the second target range.
The price is rising above the balance and MACD lines on the four-hour chart, but it has already significantly broken away from them, so the price has slightly pulled back with a decreasing Marlin oscillator. After a few black candles, we are waiting for the recovery of the Australian dollar.
*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.
InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.