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AUDUSD Quotes are Trying to Develop a "Bearish" Momentum

2/13/2023 12:45 PM

The AUD/USD pair is trying to build on the "bearish" momentum formed at the end of last week, actively testing 0.6900 for a breakdown.

Quotes of the Australian currency are trying to return to the uptrend after the Reserve Bank of Australia raised its interest rate from 3.10% to 3.35%, which is the result of a plan to reduce inflationary pressure on households. In a monetary policy report published later, regulator officials noted that the value will be adjusted further, as the Unemployment Rate is projected to rise from 3.5% to 4.5% in 2023, as well as the dynamics of Gross Domestic Product (GDP) is expected to stabilize within 1.5%. However, the RBA clarified that the step of increasing the interest rate will depend on the state of real incomes of the country's residents and the level of consumer prices.

In turn, the quotes of the American dollar began to rise again and, like a week earlier, Friday's growth blocked the fall of the entire week, pushing the USD Index to new highs around 103.000. There was no actual reason for such a strong positive dynamics in the market, but it could have been a reaction to Friday's data from the University of Michigan. According to the February polls, the Consumer Sentiment index rose to 66.4 points from 64.9 points, and the Current Conditions index rose to 72.6 points from 68.4 points.

On the daily chart, the price is trading within a narrow ascending corridor with dynamic boundaries 0.7300–0.6850, heading towards the support line.

Technical indicators are ready for a reversal and have almost given a signal to start selling: fast EMAs on the Alligator indicator started crossing the signal line from above, and the AO oscillator histogram moved into the sell zone, forming the first downward bar.

Support levels: 0.6856, 0.6687. | Resistance levels: 0.6982, 0.7136.

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