The pair will likely keep rising as investors target the next psychological level at 0.7100.

Bullish View

• Buy the AUD/USD pair and set a take-profit at 0.7100.
• Add a stop-loss at 0.6900.
• Timeline: 1-2 days.

Bearish View

• Set a sell-stop at 0.6950 and a take-profit at 0.6900.
• Add a stop-loss at 0.700.

The AUD/USD pair rose to the highest level since June 17th after the Federal Reserve delivered another 0.75% rate hike on Tuesday. The pair has now risen by over 4.7% from its lowest point this month as investors bet that the US dollar index rebound may have peaked.

Federal Reserve Rate Hike

The Federal Reserve continued its extremely hawkish policy on Wednesday as the committee continued to intervene in a bid to reduce inflation. The bank hiked rates by 0.75% for the second time this year. This hike brought the benchmark interest rate to 2.50%, which was the highest point in years.

Bond yields diverged after the rate hike. Yields of the 10-year bond yields dropped to 2.77% while the 30-year rose to 3.03%. In Australia, the country’s 10-year bond yields declined by 2.40% in the overnight session.

In a statement, the bank said that the country was heading in the right direction. Recent data showed that the country’s unemployment rate remained at 3.7%. However, it warned that inflation remained at an elevated level. The statement said:

“The Committee decided to raise the target range for the federal funds rate to 2-1/4 to 2-1/2 percent and anticipates that ongoing increases in the target range will be appropriate.”

Therefore, the spread between Australia’s and US interest rates is still wide. The Reserve Bank of Australia (RBA)  hiked interest rates to 1.35%. It will also continue hiking considering that the country’s inflation surged to 6.1%.

Meanwhile, data published on Wednesday showed that new home sales in the US declined while the trade surplus remained close to $100 billion in June. The next key catalyst for the AUD/USD pair will  be the upcoming US GDP data. Analysts expect the data to reveal that the economy expanded by 1.5% in the second quarter.

AUD/USD Forecast

The four-hour chart shows that the AUD/USD pair has been in a strong bullish trend in the past few days. The pair managed to move above the important resistance level at 0.6981, which was the highest point this month. It also rose above the 25-day and 50-day moving averages while the Relative Strength Index crossed the descending trendline.

The pair also rose slightly above the 50% Fibonacci retracement level. Therefore the pair will likely keep rising as investors target the next psychological level at 0.7100.

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SHIB/USD has delivered a rather middle of the road trading experience for short term speculators the past week of trading, but the consolidation is likely to end.

SHIB/USD has taken on a rather cautious consolidated mode the past week as the value of Shiba Inu traverses the middle of its short term price range. The highly speculative cryptocurrency which is a favorite of traders who seek volatility, has been rather quiet with its results the past few days, and while this has allowed speculators to use targeted quick hitting price action, it may have some traders feeling rather suspicious.

The broad cryptocurrency market has mirrored the results in SHIB/USD the past week in some respects. SHIB/USD did see a low of nearly 0.00002362 on the 18th of April and then a reversal higher to about 0.00002590 only two days later. These results and the slight headwinds which have followed the past day of trading in SHIB/USD have also correlated to the broader crypto market.

Choppy trading has been seen in SHIB/USD, and traders are encouraged to consider momentum in order to take advantage of developing short term trends under the present conditions. Nervous sentiment is likely building among certain speculators who are monitoring key support levels in SHIB/USD and wonder if a ‘return’ to bearish price action will mount. However, the recent trading of SHIB/USD and the broad cryptocurrency marketplace may also spark the interest of bullish speculators who believe the recent downturn experienced the past week of trading has produced oversold results.

SHIB/USD is a purely speculative cryptocurrency and it is a rather intriguing barometer of market sentiment. The recent consolidation which has taken place the past few days of trading as Shiba Inu trades in a fractional manner is not likely to last. Volatility may be ready to be exhibited sooner rather than later within SHIB/USD. Traders are urged to use specific entry price orders to ignite their positions so their ‘fills’ meet their expectations.

Buyers cannot be blamed for the belief that if current support levels prove durable, that long positions may prove to be worthwhile if they are initiated on slight moves downward, which carry the expectation of higher reversals. If SHIB/USD is able to maintain a price above the 0.00002500 juncture it may be a signal additional upside will be demonstrated in the near term. Traders are reminded SHIB/USD can move fast and that leverage needs to be carefully considered because incremental changes in value of Shiba Inu can produce astonishing results – both bad and good – depending on the outcome of wagering on this volatile cryptocurrency.

Shiba Inu Coin Short Term Outlook:

Current Resistance: 0.00002548

Current Support: 0.00002460

High Target: 0.00002630

Low Target: 0.00002353