Currency pair Australian Dollar to US Dollar AUD/USD continues to move within the correction and the downward channel. Moving averages indicate the presence of a short-term bearish trend. Prices have broken through the area between the signal lines up, which indicates pressure from buyers of the currency pair and a potential continuation of the growth in the value of the instrument already from current levels. At the time of the publication of the forecast, the Australian Dollar exchange rate against the US Dollar is 0.6973. At the moment, we should expect an attempt to develop the growth of the pair and test the resistance area near the level of 0.7010. Further, a rebound down and the continuation of the fall of quotations to the area below the level of 0.6655.
AUD/USD Forecast and Analytics for August 5, 2022
An additional signal in favor of the decline in the AUD/USD currency pair will be a rebound from the resistance line on the relative strength index (RSI). The second signal will be from the upper border of the bearish channel. Cancellation of the option of falling quotes of the Australian Dollar on Forex will be a strong rise in prices and a breakdown of the level of 0.7165. This will indicate a breakdown of the resistance area and continued growth of the AUD/USD currency pair with a potential target above the level of 0.7485. It is worth waiting for confirmation of the fall of the pair with a breakdown of the support area and closing of quotes below the level of 0.6805, which will indicate a breakdown of the lower border of the bullish correction channel.
Important news from Australia, which may affect the rate of the pair, is not expected, so the pair will continue to move within the framework of technical analysis.
Thus, AUD/USD Forecast and Analytics for August 5, 2022 suggests an attempt to test the resistance level near the 0.7010 area. Further, the pair quotes continue to fall below the level of 0.6655. An additional signal in favor of the pair’s decline will be a test of the trend line on the relative strength index (RSI). Cancellation of the fall option will be a strong growth and a breakdown of the 0.7165 area. This will indicate a continued rise in quotes with a potential target above the level of 0.7485.