The growing spread of a viral infection to Asia that is seen to affect the global economic recovery has prompted the re-strengthening of the US dollar as a safe-haven currency.
Meanwhile, high-yielding currencies such as the Australian dollar depreciated in the risk-off market sentiment situation.
As can be seen on the AUD/USD currency pair chart, the Aussie dollar is moving weaker against the US dollar with a bearish pattern displayed.
After last week’s rise managed to test the resistance zone of 0.76000, the price has made a decline again on the crew this week from that zone.
The bearish signal is clearer when the price moves back below the Moving Average 50 (MA50) barrier level on the 1 -hour time frame on the AUD/USD chart.
In yesterday's trading, after the price dropped above the level of 0.75400, the decline continued until the end of the New York session to close the trade above the level of 0.75000.
The price movement started to slow and flatten around the price area in the Asian session this morning (Wednesday), but is still seen to be below the MA50 level.
The price is expected to continue the lower decline testing the support zone of 0.74800 before the price heads to the focus level at 0.74000.
On the other hand, if the price manages to make a rebound and passes the MA50 barrier, the resistance zone of 0.76000 will be tested for the price to record a weekly high.
The SBR (support become resistance) zone above the 0.76500 level is waiting to be tested if the rise continues for a bullish trend.
