FX.co ★ AUD/USD Hot Forecast for 4th August

• AUD/USD added to its weekly gains and continued moving higher for the third successive day.
• The RBA's plan to taper the bond-buying program is still acting as a tailwind for the aussie.
• Subdued USD demand remained support, though COVID-19 woes might cap any further gains.

The AUD/USD pair maintained its bid tone through the first half of the European session and was last seen trading around the 0.7415 region, just below the three-week highs printed earlier this Wednesday.

The Australian dollar jumped after the RBA had kept its tapering course despite dovish forward guidance. The Aussie is making an attempt to reverse the gears.

The RSI divergence was an indication that the bearish momentum had died down. The break above 0.7360 may have prompted sellers to cover, allowing buyers to build a support base.

0.7360 is fresh post-RBA support. Then 0.7320 is a major level if a pullback goes deeper. On the upside, a close above the support-turned-resistance at 0.7410 may extend the rebound to 0.7480.