Fate was not on the side of the Australian dollar when the gains from the beginning of the week vanished just like yesterday's drastic price movement.
If one observes the price movement on the AUD/USD chart, the price has made a rise after the decision of the policy meeting of the Australian central bank (RBA) to the level of 0.76000. Yet prices plunged back in the European session yesterday with a daily decline of over 100 pips recorded.
This follows the re -strengthening of the US dollar with risky market sentiment also weakening the performance of the Aussie dollar.
The price has slipped to the level of 0.74800 again before the price movement leveled around it to continue the Asian market session this morning (Wednesday).
A slow rise was exhibited heading into the European session, however the price moved back below the Moving Average 50 (MA50) barrier level on the 1 -hour time frame on the AUD/USD chart giving a signal to resume the bearish trend.
The decline will be expected to test the weekly low reached last Friday around 0.74500 before continuing lower to the support zone of 0.74000.
Reaching that level will record the latest lows for the year, or the lowest since December 2020.
If the price manages to make a re -rise past the MA50 barrier and the 0.75400 price zone, investors will return to see the price will resume the surge.
The resistance zone at 0.76000 remains the focus target to be tested again for further price movement direction signals.
