AUD/USD – The Aussie Dollar Pair Gets Bullish Sentiments as Focus Shifts to RBA Policy

March 7, 2023

Long Position

Take Profit: 0.6900
Stop Loss: 0.6700
Timeline: 1-2 days

Short Position

Sell Stop: 0.6735
Take Profit: 0.6650
Stop Loss: 0.6850

The forthcoming interest rate increases, which the RBA may shortly announce, are having an impact on market sentiments. According to analysts, the RBA may choose to increase the interest rate at its tenth meeting by 0.25%. This is fully reasonable given that inflation is still at a multi-decade high of 7.8%. With bond yields rising, the Federal Reserve’s actions are also receiving attention. In the event that the prediction comes to pass, the RBA may decide to set the rate at 3.6%, the highest level ever in a time frame longer than the previous ten years.

The pair price did move slightly over the 25-period MA on the price charts, and the MACD histogram also rose slightly above the neutral line. The MACD and signal lines both rose, and the RSI climbed over the neutral level of 50 as well. Strong support was established at 0.6696, and the price moved below the crucial resistance level of 0.6784. The double top pattern’s neckline was the same as this. Overall, the pair’s price is therefore likely to continue climbing to new highs, providing buyers with a strong chance.

Author Amsterdam