AUDUSD analysis 27.07.2020

The Australian dollar fluctuated in a narrow range that tilted toward a retreat during the Asian session, bouncing back for the second session from the top since April 18, 2019, against the US dollar after the economic developments and data that we followed about the Australian economy and before the economic developments and data expected today, Thursday, by the American economy, the largest economy In the world.

At 02:45 am GMT, the Australian dollar pair declined against the US dollar 0.06% to 0.7136 levels compared to the opening levels at 0.7140, after the pair achieved its lowest level during the trading session at 0.7133, while the pair achieved the highest at 0.7152.

This was followed by the Australian economy, the disclosure of the business confidence index reading, which showed that the decline widened to 15 to 12 in the first quarter, and it is mentioned that Reserve Bank of Australia Governor Philip Lowe expressed last Tuesday that the Australian dollar is following the economic fundamentals plans. He pointed out that there is no need for the Australian Central Bank to intervene in the markets to push the Australian dollar down, adding that he wants to drop it.

 Markets are awaiting from the US economy the release of the aid requests reading for the past week on July 18, which may reflect stability at 1.3 million applications unchanged from the previous reading, while the reading of the continuing benefit requests for the last week on the 11th of this month may show a decrease of 271 thousand requests To 17,067 thousand requests, before the release of the leading indicators that may explain the slowdown in growth to 2.1% compared to 2.8% last May.

Technical analysis

The AUD / USD trades around the 0.7140 level, and we notice that the stochastic is getting rid of its negativity to approach the oversold areas in the sale, waiting for the price to stimulate the resumption of the main bullish trend, which targets the 0.7200 level as the next main station.

Therefore, we will keep our bullish expectations unless the 0.7000 level is broken and stability below it.

The expected trading range for today is between 0.7080 support and 0.7200 resistance

Expected trend for today: bullish