General analysis AUDUSD for 22.03.2022

Current dynamics

The Australian dollar today renewed a year's high. An uptrend correction is being observed at the moment, the confirmation of further growth will be a break of the level of 0.7450.
AUD/USD is strengthening as market participants are expecting further hawkish moves from the Australian regulator to combat rising price pressures. In addition a strong labour market in Australia forms an opportunity for the central bank to be more aggressive. The proportion of Australia's economically active population is rising, with employment rising by 77,4K in February and unemployment falling from 4.2% to 4%. These dynamics will contribute to growth in consumer spending, indicating that economic activity is recovering after the pandemic.
At the same time, Monday's speech by Fed Chairman Jerome Powell provided all-round support to the dollar and today's weakness of the US currency does not look logical. The head of the American regulator stated that the Fed is ready to raise the rate by 50 basis points, if the circumstances demand it. Powell also confirmed the readiness to raise the level of borrowing costs. In general, yesterday's speech by Jerome Powell was the most "hawkish" during his tenure as Fed chairman.
Also worth noting is the declining interest in EUR and GBP, as the territorial proximity to Ukraine, high inflation and the growing energy crisis make both currencies less attractive speculative instruments compared to the currencies of the Pacific zone.

Support and resistance levels

On the 4h chart, the instrument is testing a strong resistance level at 0.7440. The Bollinger Band indicator is pointing upwards and the price range is widening again, indicating a continuation of the uptrend. The MACD histogram is in the positive zone, holding a strong buy signal. Stochastic has entered the overbought area, a strong sell signal is expected within 1-2 days.

• Support levels: 0.7190, 0.7240, 0.7310, 0.7360, 0.7400.
• Resistance levels: 0.7440, 0.7470, 0.7505.

Trading scenarios

• Long positions can be opened above the level of 0.7455 with a target of 0.7510 and a stop-loss at 0.7395. Implementation period: 1-2 days.
• Short positions should be opened below the level of 0.7400 with a target of 0.7360 and a stop-loss at 0.7420. Implementation period: 1-2 days.