The Australian dollar took a hit on Friday after the country’s central bank stated that it was not in a hurry to raise rates, despite turmoil throughout the world calling for quick tightening. The Aussie declined to $0.7147, after hitting a top of $0.7248 overnight.
For the AUDUSD currency pair, we see the development of a downward trend within a large green channel. In early December, the price reached the lower green wall, after which the market turned around and began to move in an upward direction.
In the second half of January, the price reached the middle of the green channel. The bulls did not have enough strength to continue growing, and we saw a drop in value. Not so long ago, the price touched the lower green line, after which it pushed off from it and began an upward movement.
The last section of the chart describes an ascending channel of yellow color. Currently, the market is located near the lower yellow line. There is a chance that the market will break through the support level of 0.711. If this level is broken, the fall of the currency pair may continue to the support level of 0.695, which is located on the lower green line.
If the lower yellow wall is not broken, then the price can push off from this wall and start moving up. The first target for bulls is at the upper yellow line- the resistance level of 0.732. At the breakdown of this price level, market participants can expect a continued increase in the value of quotations to the upper green line and the resistance level of 0.748.
An approximate scheme of possible future movement is shown on the chart.