The strengthening of the USD is hard to stop, the AUD/USD is declining to the bottom - Kakiforex | Forex markets for the smart money. The strengthening of the USD is hard to stop, the AUD/USD is declining to the bottom The strengthening of the USD is hard to stop, the AUD/USD is declining to the bottom

June 4, 2021

The strengthening of the USD is hard to stop, the AUD/USD is declining to the bottom

 As we approach the release of the US NFP employment data report in the New York session tonight, price movements in the market are increasingly turbulent with investors surprised by the strengthening of the US dollar.


As shared on yesterday’s analysis, the price on the AUD/USD currency pair chart has continued its decline to the focus level at 0.76500 during yesterday’s New York session.


After the daily decline of around 100 pips, the price then moved slowly and flattened above that level until trading resumed today.


If examined, the level is in the RBS (resistance become support) zone and has supported trading in May from a lower price fall.


But now investors are vigilant and assess the price reaction in the zone before getting a clearer signal for the direction of further price movements.


With the bearish pattern displayed this week, expectations are more likely to see the price continue the next lower decline towards the focus zone around 0.75700-0.75300.



The zone was a price support zone in March trading before investors saw the price return to make an increase of more than 300 pips until May.


However, a price increase could also occur with the market reaction to the NFP report soon.


If the price makes a rise, the resistance level of the Moving Average 50 (MA50) on the 1 hour time frame passed by the price will again signal for the price to continue the bullish trend.


The resistance zone at 0.78300 will be the focus to test before the price hits its latest 3 -week high.