Although expected to weaken following news President Joe Biden had signed a $ 1.9 trillion stimulus package bill, the U.S. dollar remained a strong performance in Friday trading.
The strengthening of the US dollar was seen to be supported by US bond yields which rebounded after recording previous declines.
This situation hampered the chances for other major currencies in the market to maintain their strength this week including the Australian dollar.
The price chart of the AUD/USD pair is seen again showing a decline today since the Asian session continued into the European session.
The US dollar remained strong and pushed the price back to the RBS (resistance become support) zone of 0.77400.
The support level of Moving Average 50 (MA50) on the 1 hour time frame of the price will be the determinant of the further direction. A lower decline will signal a bearish trend of the price again.
The lower decline will return to the focus zone of 0.76500 and also the weekly lows around 0.76200.
On the other hand if the US dollar declines again and the price makes a rise again, the resistance zone at 0.78300 will be tested while the price records weekly highs.
Rising prices beyond the resistance zone will push expectations higher up to the 0.8000 level for a longer trading period on a bullish trend.
