AUD/USD Rate Rises after RBA Decision

FXOpen

This morning the Central Bank of Australia decided to keep the interest rate at the same level = 4.35%, as expected.

However, RBA management said that further rate hikes cannot be ruled out as inflation is still too high. This is a clear signal that policy easing is unlikely in the near future.

AUD/USD has rallied from its 2024 low following this relatively hawkish rhetoric.

The daily AUD/USD chart today shows that if the bullish momentum does not fade, then based on the results of today's trading the following may form:
→ bullish engulfing candlestick pattern;
→ bullish divergence.

At the same time, the price is near the important level of 0.6510, which since mid-2023 has repeatedly shown its influence on the AUD/USD price both as support and resistance (shown by arrows).

The ability of the AUD/USD price to consolidate above this key level will indicate the strength of demand, with:
→ a false bearish breakdown of the level of 0.651 may form on the chart;
→ it is possible that the bulls will try to build on their success and return the AUD/USD price to the area of the ascending channel (shown in blue), which dates back to last fall.

From the point of view of technical analysis of AUD/USD, the likelihood of a bullish scenario is increased by the fact that point C (the current low of the year) is located in the area of the 0.382 Fibonacci level of the impulse movement A→B.

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This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

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