FX.co ★ Forecast for AUD/USD on January 3, 2024

AUD/USD

In the last two trading sessions, the AUD/USD pair fell by 70 pips, breaking below the support at 0.6775. It seemed like a price reversal, but we should pay attention to the Marlin oscillator, which quickly passed almost the entire range of its own ascending channel and approached the zero line.

Such behavior is characteristic of a subsequent trend reversal, namely an uptrend. We may see a reversal of its signal line from the point where the zero line of the oscillator coincides with the lower band of the channel (indicated by the arrow). If such a reversal doesn't happen, then the price could plummet without support towards the nearest target at 0.6675. However, for now, our main scenario is bullish.

On the 4-hour chart, the price has managed to settle below the 0.6775 support and the indicator lines. Marlin is declining within a downtrend. It's possible that the price will drop a bit more to test the oscillator channel on the daily time frame, so we should monitor the situation, especially with the release of US ISM PMI data in the evening.