While risky market sentiment added to investors' concerns, there were other things that happened to price movements on the AUD/USD currency pair chart.
This is due to the bullish pattern displayed where the Australian dollar traded slightly stronger against the US dollar.
Market risky sentiment typically gives an advantage to the US dollar while high -yielding currencies such as the Aussie dollar will weaken. With that, the price should move to make a decline.
But trading earlier in the week saw a bullish pattern displayed on the AUD/USD chart with the latest 5 -week high reached yesterday around 0.73800.
Investors' focus will be on the US inflation data to be published in tonight's New York session for the US dollar, and then the Australian employment data report to be published in the Asian session tomorrow morning (Thursday) for the Aussie dollar.
Meanwhile, investors were wary of the initial ‘bearish’ signal on the AUD/USD chart as the price started moving below the Moving Average 50 (MA50) support level on the 1 -hour time frame.
The horizontal price movement in the 0.73400 zone since the Asian session this morning continues into the beginning of the European session.
If the price decline occurs, the price support level that will be tested is seen to be in the RBS (resistance become support) zone of 0.73000 which is the starting level of the price increase at the beginning of this week.
A lower decline below the RBS zone of 0.73000 is seen to lead to the next focus support zone at 0.72000-0.71800.
However, if the price still manages to maintain the ‘bullish’ pattern at the beginning of the week, the resistance zone of 0.74000 will be an important zone that will be tested by the price.
A higher rise will test the resistance zone tested last September at the high level around 0.74700.
