The Australian dollar is declining against the US currency in the morning session, developing a "bearish" momentum that formed at the end of last week, when the pair turned down near its local highs since July 19.
AUD/USD forex forecast and analytics today and July 27 - 28, 2021
The development of the downward dynamics, in addition to the technical factors of the correction of the long profit at the end of the week, was facilitated by weak macroeconomic statistics from Australia. Thus, the index of business activity in the services sector from the Commonwealth Bank in July fell sharply from 56.8 to 44.2 points against the background of the introduction of new restrictive measures in certain regions of the country. The index of business activity in the manufacturing industry for the same period also fell from 58.6 to 56.8 points, which turned out to be worse than analysts' forecasts.
In addition to the start of the two-day meeting of the US Federal Reserve, investors expect the publication of statistics on consumer inflation in Australia for the 2nd quarter of 2021 on Wednesday. It is expected that prices may show a slight increase, which, however, is unlikely to put additional pressure on the Reserve Bank of Australia (RBA) when choosing a monetary policy vector.
Support and resistance levels
The Bollinger bands on the daily chart show a steady decline within the forex forecast. The price range is narrowing, but it still remains quite spacious for the current level of activity in the market. The MACD indicator is trying to turn up and form a new buy signal (the histogram tends to be located above the signal line). Stochastic maintains a confident upward dynamics and practically does not react to the appearance of a corrective decline in recent days.
Resistance levels: 0.7400, 0.7443, 0.7475, 0.7500.
Support levels: 0.7338, 0.7300, 0.7265, 0.7200.
Thus, AUD/USD forex forecast for July 27-28, 2021 to open short positions, you can rely on a confident breakdown of the 0.7338 level down. Take profit — 0.7265. The stop loss is 0.7370. Implementation period: 1-2 days.
A rebound of the instrument from the level of 0.7338 as a support, followed by a breakdown of the 0.7400 mark up, may be a signal for new purchases with a target of 0.7475. The stop loss is 0.7360.