fbAUDUSD Forecast | Preparing for the Reserve Bank of Australia's meeting | IFCM UK

Technical Analysis AUDUSD : 2020-08-04

Recommendation for AUD/USD:

Sell
Strong SellSellNeutralBuyStrong Buy

Below 0,705

Sell Stop

Above 0,725

Stop Loss

Expert Avatar
Senior Analytical Expert
Articles 1605
IndicatorValueSignal
RSI Sell
MACD Buy
MA(200) Neutral
Fractals Neutral
Parabolic SAR Sell
Bollinger Bands Neutral

Chart Analysis

IFC Markets Tech Analysis

On the daily timeframe, AUDUSD: D1 approached the uptrend support line. It must be breached down before opening a position. A number of technical analysis indicators formed signals for a decline. We do not exclude a bearish movement if AUDUSD falls below the last lower fractal: 0.705. This level can be used as an entry point. We can set a stop loss above the maximum since February 2019 and the Parabolic signal: 0.725. After opening a pending order, we should move the stop loss to the next fractal low following the Bollinger and Parabolic signals. Thus, we change the potential profit/loss ratio in our favor. After the transaction, the most risk-averse traders can switch to a four-hour chart and set a stop loss, moving it in the direction of the bias. If the price meets the stop loss (0.725) without activating the order (0.705), it is recommended to delete the order: some internal changes in the market have not been taken into account.

Fundamental Analysis

Australian State of Victoria declared disaster regime due to an increase in the number of patients with Covid-19. Will AUDUSD quotations shrink?

The number of coronavirus patients in Australian State of Victoria has been on the rise since July 17. The state's governor, Daniel Andrews, announced the disaster regime. Quarantine measures will enter into force on August 5 and will last until September 13. The state of Victoria with the capital in Melbourne accounts for about a quarter of Australia's GDP and 20% of the population. The Reserve Bank of Australia (RBA) will have an ordinary meeting on 4 August 2020. No rate change (0.25%) is expected. Australia’s foreign trade and retail sales for June will also be available on Tuesday. On August 5, Australia is to release its second quarter unemployment figures. The RBA's statement on monetary policy and a speech by the Chief Economist and Assistant Manager - Luci Ellis, are expected on August 7. There is a risk that the RBA will downgrade its forecast for Australia's GDP growth due to the re-outbreak of the Covid-19 pandemic or announce further monetary easing.

Trading signals with a probability of 80% by Autochartist

  • Easy to use
  • Fully automatic
  • Wide range of analytics

The best trading conditions and high-level services for our clients

We are ready to assist you on any issue 24 hours a day.

Note: This overview has an informative and tutorial character and is published for free. All the data, included in the overview, are received from public sources, recognized as more or less reliable. Moreover, there is no guarantee that the indicated information is full and precise. Overviews are not updated. The whole information in each overview, including opinion, indicators, charts and anything else, is provided only for familiarization purposes and is not financial advice or а recommendation. The whole text and its any part, as well as the charts cannot be considered as an offer to make a deal with any asset. IFC Markets and its employees under any circumstances are not liable for any action taken by someone else during or after reading the overview.