Solid News
AUDUSD Long-term Trend Remains Upward
12/19/2022 3:20 PMLast week, the USD strengthened against all major competitors, as a result of which the AUD/USD pair corrected to the area of 0.6670.
The positive dynamics was facilitated by the increase in the interest rate of the US Fed by 50.0 basis points to 4.50%. Additional investor interest in the US currency appeared after the speech of the head of the department Jerome Powell, who admitted that the latest data show a decrease in monthly price growth rates, but in order to make sure of a steady decline in inflation, additional evidence will be needed. The data released last week reflected a drop in the consumer price index in the US to 7.1% year-on-year, which still remains well above the target level of 2.0%, so the "hawkish" rhetoric of the department on the issue of tightening monetary incentives will continue next year.
Meanwhile, buyers of the Australian dollar took a pause, allowing the price to decline ahead of the publication of the results of the Reserve Bank of Australia (RBA) monetary policy meeting on December 20, which will determine whether the AUD/USD pair will continue the long-term uptrend or break the support level of 0.6670 and go into a deep correction.
The long-term trend, however, remains upward. Last week, market participants tried to reach the resistance level of 0.6900, but they did not succeed, and the pair went into a correction, within which the price fell to the area of 0.6670 and is currently trading slightly higher. While the 0.6670 mark will be held by buyers, it is worth considering long positions with a target at 0.6900, otherwise the correction will continue with targets at 0.6585 and 0.6500.
The mid-term trend is upward. Last week, the price corrected to the key support area of 0.6693–0.6673, which was held, therefore, new purchases of the instrument can be considered with a target at last week's maximum of 0.6890. If the 0.6693–0.6673 support is broken down during trading, then the mid-term trend will change to a downward one, and the sales target will be the target zone 0.6493–0.6473.
Resistance levels: 0.6900, 0.7000. | Support levels: 0.6670, 0.6585, 0.6500.
