AUD/USD – THe Pair Giving Bullish Signals With Upcoming Rate Hikes

Bullish View

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

Bearish View

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

The market sentiments are being influenced by the upcoming interest rate hikes which may get announced by the RBA soon. Economists expect that the RBA will decide to raise the interest rate by 0.25% on the 10th meeting. This is very much justified with the inflation persisting at a level of 7.8% which is a multi-decade high. The Federal Reserve’s actions are also in the limelight with bond yields rising. If the prediction turns out to be true, then RBA may decide to set the rate at 3.6% which is the highest level ever set in the period longer than the last 10 years.

On the price charts, the pair price did move a little above the 25- period MA and the histogram of MACD also moved above the neutral point. We saw a rise in the case of MACD and signal lines and the RSI also moved above the neutral point at 50. There was a strong support forming at 0.6696 and also moved beneath the key resistance point at 0.6784. This was also the neckline of the double top pattern. So, overall the pair price is likely to keep rising to new highs which is a good opportunity for buyers.

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