Solid News
AUDUSD are Preparing to Break the Support Level of 0.6870
2/21/2023 1:09 PMThe AUD/USD pair shows a noticeable increase, trying to recover from last week's decline. The instrument is testing the 0.6890 mark for a breakout after the publication of the minutes of the last meeting of the Reserve Bank of Australia (RBA).
The accompanying statement of the regulator states that the interest rate increase at the February 7 meeting was justified because strong consumer demand does not allow inflation in Australia to decrease from maximum levels, but instead of increasing the value by 50 basis points, the RBA adjusted it by only 25 basis points, thereby disappointing investors. The current dynamics of consumer prices in Australia is caused, among other things, by the lowest unemployment rate in the last 50 years, as well as a large number of vacancies, which has a stimulating effect on households and leads to an increase in consumer spending and money injection into the economy.
The AUD/USD pair is declining and is preparing to break the 0.6870 level. If this level is broken down, then the way will open for a further decline in quotes to the area of 0.6670.
The long-term trend is still upward. The key support is at 0.6670, but in order to reach it, sellers need to break down the 0.6870 mark. If this level is held, the growth will continue with targets at 0.7000 and 0.7130.
The mid-term trend is downward. After the breakdown of the target zone 0.6957–0.6937 in early February, the next target of the decline is target zone 2 (0.6757–0.6737). The key resistance of the trend is shifting to 0.7031–0.7011. If this zone is reached within the framework of an upward correction, it will be possible to consider new sales of the instrument with a target at last week's low of 0.6815.
Resistance levels: 0.7000, 0.7130, 0.7275. | Support levels: 0.6870, 0.6670, 0.6585.
