- AUD/USD is up 1.13% on the week.
- Fighting between Ukraine and Russia dominates news headlines as tensions rise.
- AUD/USD Technical Outlook: Under downward pressure as AUD/USD sellers test the 0.7240 level.
Benefiting from the Reserve Bank of New Zealand’s (RBNZ) 25 bps rate hike and its “aggressive” forward guidance, AUD/USD rises to fresh monthly highs around 0.7280. However, a sudden change in market mood due to heightened tensions in Ukraine dampened appetite for risk-sensitive currencies such as the AUD. At the time of writing this article, the AUD/USD trades at 0.7243.
Meanwhile, the US dollar saw fresh flows into it as the US dollar index, a gauge of the dollar’s value against a basket of its peers, rose 0.10% to settle at 96.12.
Ukraine – Russia crisis intensifies
According to Sputnik, around 15:39 GMT, explosions were heard at the Donetsk airport. Meanwhile, Interfax reported that Ukrainian government websites are reportedly under cyber attack, including Ukrainian banks. It should be noted that Ukraine declared a 30-day state of emergency on Wednesday and urged citizens to flee Russia. At the same time, Russia closed its embassy in Ukraine and evacuated staff.
That weighed on the AUD/USD pair, as shown by the 40 pip drop from daily highs, but found support near the Feb 10 daily high at 0.7245, a crucial support level for AUD bulls in the event of a breakout. extend the uptrend.
In the Asian session, the Australian economic docket presented the WPI for the fourth quarter of 2021. Headlines were in line with expectations at 0.7% QoQ, while the YoY figure was 2.3%, lower than the 2.4 estimates. ANZ analysts said “this WPI was not strong enough to make a June rate hike safer than not.”
AUD/USD Price Forecast: Technical Outlook
AUD/USD’s retracement from Wednesday’s daily highs left a long rising wick represented by the candlestick on the daily chart, indicating that traders’ and sellers’ accounting profits may have opened new short bets. A move below the Feb 10 high at 0.7245 could exacerbate a move towards a three-month downward sloping support trend line around the 0.7180-95 area, but early AUD/USD sellers would need a clear break below. below 0.7200.
Additional technical levels
AUD/USD
| Panorama | |
|---|---|
| Last Price Today | 0.7236 |
| Today’s Daily Change | 0.0019 |
| Today’s Daily Change % | 0.26 |
| Today’s Daily Opening | 0.7217 |
| Trends | |
|---|---|
| 20 Daily SMA | 0.7134 |
| 50 Daily SMA | 0.7176 |
| 100 Daily SMA | 0.7242 |
| 200 Daily SMA | 0.7343 |
| levels | |
|---|---|
| Previous Daily High | 0.7234 |
| Previous Daily Minimum | 0.7173 |
| Previous Maximum Weekly | 0.7229 |
| Previous Weekly Minimum | 0.7086 |
| Monthly Prior Maximum | 0.7315 |
| Previous Monthly Minimum | 0.6966 |
| Daily Fibonacci 38.2% | 0.7211 |
| Daily Fibonacci 61.8% | 0.7196 |
| Daily Pivot Point S1 | 0.7182 |
| Daily Pivot Point S2 | 0.7146 |
| Daily Pivot Point S3 | 0.712 |
| Daily Pivot Point R1 | 0.7243 |
| Daily Pivot Point R2 | 0.7269 |
| Daily Pivot Point R3 | 0.7305 |
Source: Fx Street
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