Australian central bank (RBA) Governor Philip Lowe’s statement at the September edition meeting has remained pushing the AUD to continue to move weak towards the end of trading this month.
At a time of recorded weakness, the US dollar took the opportunity to push up price movements on the AUD/USD chart to maintain a bearish pace at the start of the European session today (Thursday).
After struggling with a horizontal movement last week, the price finally re -reacted to make a decline of over 100 pips at the market opening this week.
The decline also shows the strengthening of the bearish trend that can be seen on the AUD/USD price chart which is seen making the latest LH (lower high) pattern in European session trading.
If the downtrend movement is able to be sustained, the declining decline is expected to re -test the support zone reached at the end of August 2020 around 0.71000.
The SBR (support become resistance) zone of 0.72000 is likely to be tested first before the price movement signals a more aggressive return.
Meanwhile, if the price movement manages to show a clearer trend change, the price is expected to head to the next SBR zone around 0.73000.
The increase will also indirectly react to investors to see price movements on the AUD/USD chart to signal a change in the bullish trend.
