Comprehensive AUD/USD Analysis for December 5, 2023

In this comprehensive analysis, Ultima Markets brings you an insightful breakdown of the AUD/USD for 5th December 2023. 

AUD/USD Key Takeaways 

• RBA will not raise interest rates: In November, the Reserve Bank of Australia chose to raise interest rates again by 25 basis points, and also hinted that this may be the last increase in interest rates. Therefore, there is a high probability that the RBA will keep interest rates unchanged today. 
• U.S. dollar is weak: Federal Reserve Chairman Powell’s speech on Friday spurred gold prices to a record high, with traders interpreting it as a signal that the Federal Reserve will turn to interest rate cuts. 

AUD/USD Technical Analysis 

AUD/USD Daily Chart Insights

• Stochastic Oscillator: The indicator sends a short signal in the overbought area, suggesting that the strong upward trend may usher in a correction. 
• Upward channel: The exchange rate repeatedly consolidated along the upper edge of the upward channel, forming a downward candlestick yesterday. If the market breaks through the previous high, it will usher in a rapid appreciation trend. 

AUD/USD 4-hour Chart Analysis

• Stochastic oscillator: The indicator is in a downward trend, clarifying the downward corrective trend of the current exchange rate. Before the indicator sends a long signal, you cannot judge that the market price will start to rise again. 
• Moving average support: The red 65-period moving average supports the entire upward trend, so if the market falls below this moving average, be wary of the upward trend being destroyed. 

Ultima Markets MT4 Pivot Indicator

• According to the pivot indicator in Ultima Markets MT4, the central price of the day is established at 0.66386, 
• Bullish Scenario: Bullish sentiment prevails above 0.66386, first target 0.66715, second target 0.67237; 
• Bearish Outlook: In a bearish scenario below 0.66386, first target 0.65860, second target 0.65526. 

Conclusion