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AUDUSD is Preparing toContinue its Decline

9/5/2022 3:20 PM

After the breakdown of the support level of 0.6865, the AUD/USD pair has no obstacles left for a further decline to the 0.6680 area.

The downward dynamics of the asset are facilitated by the steady growth of the US currency due to the aggressive monetary policy of the US Federal Reserve. Although the annual US inflation rate fell from 9.1% to 8.5% over the month, regulator officials announced the need to follow a "hawkish" course. According to the president of the Federal Reserve Bank of Atlanta, Rafael Bostic, the department needs to slow down the economy to prevent further price increases.

Against this background, the trading instrument is moving in a long-term downtrend with the target around ​​the July low of 0.6680, after which the next target will be 0.6560. Otherwise, it will be possible to count on the development of an upward correction to 0.6865.

The medium-term trend is downwards. After the breakdown of the target zone 0.6936–0.6916, the AUD/USD pair decreases to zone 2 (0.6736–0.6716), after which a correction may develop. The key resistance of the trend is shifting to 0.6991–0.6971, and if the price reaches this area, it will be possible to consider new sales to renew the current week's low at 0.6774.

Resistance levels: 0.6865, 0.6990. | Support levels: 0.6680, 0.6560.

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