Current trend

After a sharp fall in early August, the AUD/USD pair managed to recover above the resistance level of 0.6575, which is now becoming support.

The positive dynamics of the currency are supported by the decision of the Reserve Bank of Australia (RBA) to keep the interest rate at 4.35%. Inflation is 3.8% YoY, above the target range of 2.0–3.0%, and the core indicator is 3.9%, which is in line with the department's May forecast, remaining above the midpoint of the target level for eleven quarters in a row. The consumer price index has been decreasing slightly quarterly. In the accompanying statement, the council members say that they will take all necessary measures to return the value to the target level.

If the trading instrument consolidates above 0.6575, the long-term trend will reverse upwards, with the target at 0.6630 and then at the area of ​​0.6703 and 0.6790 (July high). However, after a breakdown of 0.6540, short positions, with the targets of 0.6450 and 0.6353 are relevant. The RSI (21) indicator was approaching the oversold zone in early August but is now in the neutral area.

After reaching zone 3 (0.6363–0.6349), the price reversed upwards and broke through the key resistance of the medium-term downward trend of 0.6508–0.6493, as a result of which the trend reversed upwards to zone 2 (0.6653–0.6638). Long positions should be considered on the correction from the key trend support area of ​​0.6460–0.6445, with the target at the current week's high of 0.6602, and then around 0.6798–0.6783.

Support and resistance

Resistance levels: 0.6630, 0.6703, 0.6790.

Support levels: 0.6575, 0.6540, 0.6450.

Trading tips

Long positions may be opened from 0.6540, with the target at 0.6630 and stop loss of 0.6510. Implementation period: 9–12 days.

Short positions may be opened below 0.6510, with the target at 0.6450 and stop loss of 0.6540.