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AUDUSD are Preparing to Update the November High

11/29/2022 1:20 PM

The AUD/USD pair is actively adding in value, preparing to continue the uptrend with a target at 0.6800.

The weakness of the US currency is due to the transition of the US Fed to a softer rhetoric regarding interest rate adjustments. At the next meeting on December 14, the regulator is likely to raise the indicator by only 0.50% instead of 0.75%, as it was earlier. In addition, many officials say that the value is approaching its maximum, and, in their opinion, it will stabilize near the 5.00% mark next year.

At the same time, the Reserve Bank of Australia (RBA) at its last meeting in November raised the interest rate by only 0.25% to 2.85%. It can be assumed that the department feels confident in the fight against inflation, which is still at a high level of 7.3%. Earlier, data on the volume of retail sales in Australia in monthly terms for October were also published: the indicator was at the level of -0.2%, as a result of which the quotes of the AUD/ USD pair fell to 0.6642, but today the drop was compensated.

Thus, the position of the Australian dollar remains strong, and growth is likely to continue until the announcement of the US Fed's decision on the interest rate.

The long-term trend is upward. After the breakout of the 0.6600 level, the target for purchases is the 0.6800 mark, the breakout of which will create the prospect of growth of quotations to the area of 0.6900 and 0.7000. The key support of the trend is shifting to the area of 0.6585. While the price is trading above this level, it is worth considering long positions for the instrument.

The mid-term trend is upward. Last week, the price corrected to the key support area of 0.6597–0.6577, which was held, as a result of which the price rose. The November maximum in the 0.6795 area could not be updated by buyers, so the 0.6795 mark is the main target for the current week.

Resistance levels: 0.6800, 0.6900, 0.7000. | Support levels: 0.6592, 0.6500.

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