AUD/USD (Australian Dollar/US Dollar) - Current Trend
Since the beginning of August, the AUD/USD pair has been actively rising, currently trading around 0.6730. This movement is primarily driven by the divergence in monetary policies between the Federal Reserve (FRB) and the Reserve Bank of Australia (RBA).
Investors anticipate that the FRB is likely to cut interest rates in the near future, while the RBA is expected to pause its tightening cycle and either maintain rates at current levels or possibly raise them again. U.S. inflation data released in July confirmed a decrease in price pressures within the economy, increasing the likelihood of the FRB initiating monetary easing in September.
On the other hand, the RBA, in its most recent policy meeting minutes, indicated that a near-term rate cut is unlikely and emphasized the need to maintain high rates for an extended period to ensure inflation control. The possibility of further tightening by the RBA was also discussed, although no decision has been made at this time.
Support and Resistance
Currently, the price is holding above 0.6713, with the potential to rise towards targets of 0.6774 and 0.6835. Conversely, if the price falls below 0.6573, it could decline towards 0.6510 and 0.6469.
Technical indicators also confirm the upward trend, with the Bollinger Bands pointing upwards, the MACD histogram in the positive zone, and the Stochastic Oscillator in the overbought zone but still trending upwards.
Resistance Levels: 0.6774, 0.6835
Support Levels: 0.6573, 0.6510, 0.6469
Trading Plans
- Long Position: Buy at 0.6740, target 0.6835, stop loss at 0.6700. Duration: 5-7 days.
- Short Position: If the price falls below 0.6573, target 0.6510, 0.6469, stop loss at 0.6625.
