Market risk-on sentiment remains favorable for trading on commodity currencies, particularly the Australian dollar, which continued to strengthen this week against the US dollar.
On the AUD / USD pair price chart, price movements slowed slightly in the Asian session this morning (Thursday) after closing trades in the previous New York session at the latest highs.
With the US dollar depreciating factor as well, prices have the potential to continue rising to record the latest 3-year high.
The trend remains bullish with price movements above the Moving Average 50 (MA50) support level in the 1 hour time frame of the price movement seen on the AUD / USD chart.
After reaching an altitude of around 0.79700 at the end of the New York session, today's trading will target the 0.8000 level as a price-tested destination.
However, with the previous series of price increases as well as the momentum displayed at the beginning of the week, the price is expected to have the potential to break the high level of 0.8000 before heading to the level of 0.81000 to test the resistance level in January 2018.
Even so, investors still need to assess expectations for a bearish situation if market sentiment begins to change.
Prices that fall below the MA50 support level will signal the beginning of a bearish trend.
The price decline is seen to test the RBS zone (resistance become support) at 0.78200 before heading to the lower concentration level around 0.77300.
