AUD/USD: in range. Is the upward correction close to completion?

In response to the decision announced last Tuesday to raise the interest rate by 0.25%, the Australian dollar reacted very restrainedly, and the trading day on Tuesday, in tandem with the US dollar, generally closed in negative territory. However, AUD/USD edged higher on Wednesday, but mostly due to USD weakness, and is now trading in a tight range around yesterday's close and 0.6731, which is an important near-term resistance level.

So far, and despite the upward correction since mid-October, below the resistance levels of 0.6835, 0.6890, a global downtrend prevails. The breakdown of the lower border of the range formed since the middle of the last month and the support level of 0.6635 will confirm our main scenario for the resumption of the pair's decline.

In an alternative scenario, AUD/USD will break into the zone above the resistance level of 0.6890. But, most likely, in this zone, AUD/USD is waiting for a rebound and further movement according to our main (negative for AUD/USD) scenario.

*) for the events of the week, see Key economic events of the week 05.12.2022 – 11.12.2022

Support levels: 0.6669, 0.6635, 0.6600, 0.6500, 0.6455, 0.6390, 0.6285, 0.6200, 0.6170, 0.5975, 0.5665, 0.5510

Resistance levels: 0.6731, 0.6760, 0.6800, 0.6835, 0.6890

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