According to our analysis published on 24th July we came up with some neutral sentiments on Australian Dollar versus U.S Dollar in terms of weekly timeframe in which we mentioned bearish correction of higher degree or as bearish five wave impulsive pattern of minor degree, both would satisfy the current situation of the pair. Our EMA200 on the weekly chart has provided the pair with a bullish pull back to 0.74110 with relative strength index also trading below 50 near 43. 

On the daily chart AUDUSD is below our 38.2%fibb level as well while the relative strength index also lyes under pressure of the dovish sentiments. Australian dollars weakness is still being dominated by th increasing numbers of covid-19 infectants which in return is hitting the economy due to heavy lockdown.  When we move to analyzing the wave structure and elliot count. The current market scenario has intended to consolidate itself once again between 0.74157 and 0.73100 price action, failing to provide a bullish breakout from this zone is indicating a continuation of the bearish rally. 

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES :

According to the fundamentals, Reserve Bank of Australia decided to taper down its interest rate by showing no signs of increase in the inflation numbers. The AGB purchases which started earlier this year, the bank will be monitoring that program under economic conditions and the health recovery situation from covid-19 infectant. The news said its expected that Australian dollar will start recovering soon after the end of third quarter and as we start containing the coronavirus situation. In current market scenario on our charts in daily it seems to resemble with our stance of expecting AUDUSD coming down to our 23.6% fibb level at 0.722272 and then diving further towards 0.70627. The bullish reversal will be mainly dependent on positive stimulus being jacked up through fundamentals. 

AUDUSD D1

Aug 03 2021