The depreciation of the US dollar until the end of the week has benefited the movements of other major currencies in the market including the Australian dollar.
However, high-yielding currencies such as the Australian dollar are sensitive to global market sentiment where concerns over the increase in Delta variant Covid-19 infection limit its value consolidation.
As can be seen on the AUD/USD currency pair chart, the price is starting to show signs of making a rebound after the US dollar’s declining performance since last week.
Last week's lowest decline reached the support level of 0.73000 before the price rose slightly and leveled in the price zone range around 100 pips.
As of Thursday's trading yesterday, the price has not managed to break the resistance level of 0.74000 in the SBR zone (support become resistance).
The price has moved back above the Moving Average 50 (MA50) support level on the 1 -hour time frame for an early signal of a bullish trend movement, however the bullish pattern displayed is still weak.
The bulls need to break the SBR zone of 0.74000 first to give a clearer bullish signal.
For the bullish trend, the price is seen to test the 0.74800 zone before the continued rise will head to the next resistance zone at 0.76000.
On the other hand, if the 0.74000 zone is still immune to be broken, it is likely that the price may fall back to the support level of 0.73000.
Investors may find it a little difficult to determine a clearer direction for price movements if there are no significant changes in current market sentiment.
