As expected, the price movement on the AUD / USD currency pair chart has reached its latest high of 0.8000.
However, what investors did not expect when after the price reached the latest highs, the price has plummeted again around 140 pips!
The strengthening factor of the US dollar in the New York session yesterday seems to have had an impact on the change in price direction on the major charts including AUD / USD.
The drop in prices was so significant that market sentiment, which was seen to be at risk after the decline in major Wall Street market indices, also had a detrimental effect on the Aussie dollar.
The price has fallen above the Moving Average 50 (MA50) support level signaling a bearish trend change until the price reaches the level around 0.78600.
Continuing the Asian session trading today, the price continued to decline lower to the level of 0.78200 to test the RBS (resistance become support) zone.
If the bearish momentum is maintained, the price will fall lower towards the support level around 0.77300.
A lower support zone at 0.76500 will await a continued price fall.
On the other hand if the price manages to make a rebound, the MA50 resistance level needs to be passed again for the price to head back to the resistance level of 0.8000.
