AUDUSD with new long-term lows
07 March 2023
Asian session brought the interest rate decision from Australia. We did not experience any surprise here - the rates went 25bp higher. What was surprising was the dovish statement from the RBA that caused a negative reaction to the AUD.
Even before the RBA decision, the AUD was under bearish pressure. On the AUDUSD, the price was going lower, influenced by the big head and shoulders pattern from the beginning of the year. The most recent price movement was the sideways trend locked inside of the rectangle pattern (grey) with clear support on the psychological barrier of 0.67 (blue).
This barrier crashed today, which is a proper sell signal again. The negative sentiment remains as long as the price stays below the red down-trendline and blue horizontal resistance. Chances of a bullish reversal are currently rather low.