After ISM survey data of the manufacturing sector in the United States (US) was published rising on Tuesday, the subsequent movement of the US dollar was supported by indicators for the Federal Reserve (Fed) to reduce bond purchases.
Thus, investors saw the strengthening of the US dollar in a precautionary situation ahead of the US NFP jobs report on Friday which will certainly have a big impact on market price movements.
Other major currencies in the market are beginning to find it harder to strengthen against the US dollar than before.
If viewed on the chart of the AUD/USD currency pair, the decline is seen again after the rise displayed at the beginning of the week was blocked at the level around 0.77700.
In fact, the price also started moving below the Moving Average 50 (MA50) barrier level in the 1 -hour time frame until continuing on Thursday for the price signal to make a lower decline.
Focus on the 0.76500 support zone for a bearish situation. The zone has managed to re -support the price increase after the decline to the zone last week.
If the price manages to break the zone, the continued decline is seen to test the support zone at 0.75700-0.75300.
Still, it is not impossible for prices to resume rising over the weekend and is likely to resume next week if the NFP report declines and causes the value of the US dollar to continue to depreciate.
The bulls will retest the resistance zone around 0.78300 which is still blocking the bulls for the last 2 weeks in a row.
The price that manages to pass that level is then expected to move to the level around 0.79000 and the main resistance level at 0.80000.
