[DAILY NOTION] FXEMPIRE - AUD/USD Forecast - Oct 27, 2020

The Australian Dollar is edging higher on Tuesday in a lackluster trade. The currency is trading inside yesterday’s range, which suggests investor indecision. Traders are not paying too much attention to economic news with most keeping an eye on any movement in the United States toward a fiscal stimulus package and the potential impact of rising coronavirus cases on the global economic recovery.

At 08:43 (GMT), the AUD/USD is trading 0.7130, up 0.0007 or +0.10%.

The Reserve Bank of Australia (RBA) is expected to trim its benchmark rate from 0.25 percent to 0.10 percent on the same day as the U.S. presidential election 2020, and probably announce the start of more aggressive bond-buying in an effort to revive the economy with historically low interest rates.

What's Next?

The main trend is down according to the daily swing chart. A trade through 0.7243 will change the main trend to up. A move through 0.7021 will signal a resumption of the downtrend.

Given the early price action, the direction of the AUD/USD on Tuesday is likely to be determined by trader reaction to the minor 50% level at 0.7132.

A sustained move under 0.7132 will indicate the presence of sellers. This could trigger a break into a 50% level at 0.7095, followed by a minor support range at 0.7090 to 0.7073.

A sustained move over 0.7132 will signal the presence of buyers. The first upside target is a resistance cluster at 0.7158. This is also a potential trigger point for an acceleration to the upside with 0.7210 the next likely upside target.

Keep in mind that we’re still in a headline driven market so expect heightened volatility especially since volume is low.

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