Currency pair Australian Dollar to US Dollar AUD/USD completes the trading week near the area of 0.6664. The pair continues to move as part of the development of strong growth and the formation of the reversal pattern “Wedge”. Moving averages indicate a bearish trend. Prices have broken through the area between the signal lines up, which indicates pressure from buyers of the asset and a potential continued growth in the value of the currency pair. At the moment, we should expect an attempt to develop a bullish correction and test the resistance area near the level of 0.6725. Then, a rebound and continued fall of AUD/USD with a potential target below the level of 0.6175 in the foreign exchange market.
AUD/USD Weekly Forecast July 31 — August 4, 2023
An additional signal in favor of the fall of the pair on Forex will be a rebound from the upper border of the descending channel. The second signal will be a rebound from the descending trend line on the relative strength index, it is worth noting that the head and shoulders reversal pattern is being formed on the RSI indicator. Cancellation of the option of falling the AUD/USD currency pair in the current trading week July 31 — August 4, 2023 will be a strong growth and a breakdown of the level of 0.7135. This will indicate a breakdown of resistance and a continuation of the rise of the Australian Dollar on Forex with a potential target at the level of 0.7475. A confirmation of the development of the decline will be a breakdown of the support area and the closing of prices below the level of 0.6405, which will indicate a breakdown of the lower border of the bullish correction channel.
Among the important news from Australia that may have an impact on the Australian exchange rate, it is worth highlighting: The decision of the Reserve Bank of Australia (RBA) Interest Rate Decision.
AUD/USD Weekly Forecast July 31 — August 4, 2023 suggests an attempt to develop a bullish correction and test the level of 0.6725. Further, the continuation of the decline of the currency pair below the level of 0.6175. In favor of the fall of the pair in the current trading week, a test of the trend line on the relative strength index (RSI) will come out. Cancellation of the downside option will be a strong growth and a breakdown of the 0.7135 area. This will indicate a breakdown of the resistance area and continued growth of the pair with a target above 0.7475.
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