AUD/USD continues to decline this week, and at the moment the pair is testing to break support at 0.6250. At these levels the last time the asset traded in April 2020.
Investors sell risky assets amid geopolitical uncertainty and aggressive tightening of monetary policy by the Federal Reserve System, the "Australian" is also pressed by the national statistics. Business activity index of the service sector in Australia for September has lost 0.9% from 53.3 to 48.0 points against the forecast of 50.0 p. Consumer confidence index in October. Business Environment Index for September fell from 10.0 to 5.0 p. At the same time the Business Environment Index increased from 20.0 to 23.0 p.
Reserve Bank of Australia noted that tightening financial conditions make it difficult for households to repay loans. The situation, according to the regulator, could worsen if the unemployment rate starts to rise
AUD/USD Technical analysis
Bollinger Band on the daily chart is steadily declining.
MACD indicator continues to decline in the negative area and holds a strong sell signal.
Stochastic Oscillator is in the area of minimum values.
After a confident breakdown and fixation of the price below key support at 0.6250, consider an entry into short positions with Take Profit at 0.6100. Stop loss is set at 0.6320.
If the pair turns, fixation of the price above resistance of 0.6320 will signal the reversal. In this case we form long positions with the target at 0.6450. Placement of protective stop at 0.6250.
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