Commodity currencies such as the Australian dollar and the New Zealand dollar are expected to continue trading well this weekend after market sentiment was backed by news of Democrats winning the Georgia election which would expect greater economic stimulus in the United States (US).
Price movements on the AUD / USD currency chart have also recorded the latest highs since March 2018 with the increase reached yesterday at the high of 1.78200.
While the Aussie dollar was also affected by weak economic data as well as the risk of tensions between the US and China, investors remained optimistic that the continued depreciation of the US dollar would provide room for other major currencies including the Aussie dollar to strengthen.
The price increase on the AUD / USD chart is likely to target up to the level of 0.8000 for the price test of the main resistance zone which was last tested was in February 2018.
But investors need to remain cautious if prices return to a downturn if market sentiment turns risky again.
The initial decline in the price will test the RBS zone (resistance become support) 0.77600-0.77300 as well as the Moving Average 50 (MA50) support level within the 1 hour time frame of the price movement before signaling a bearish trend change.
A lower decline would lead back to the 0.76500 RBS zone before reaching the lower 0.75700 level.
