InstaForex

October 5, 2021

The $ 0.73000 Zone Will Be The Determinant Of AUD/USD Price Movement

 After being pressed by risky market sentiment, the Aussie dollar again showed a strengthening to support the price on the AUD/USD chart again soaring.


The strengthening was slightly driven by the weak aspect presented by the US dollar at the end of last week for the price movement to rise over 80 pips.


Being the focus to influence the price movement of the Aussie dollar is a statement that will be thrown at the Reserve Bank of Australia (RBA) meeting in trading tomorrow (Tuesday).


At a previous meeting, the RBA had decided to reduce bond purchases to $ 4 billion from $ 5 billion and will likely extend until at least mid-February 2022.


Given these aspects, it is likely to indirectly undermine investors' expectations to determine the further movement of the Australian dollar.


Looking at the price chart of the AUD/USD pair, the surge has already re -tested the resistance zone of 0.72730 before moving horizontally entering the market session today (Tuesday).



The SBR (support become resistance) zone of 0.73000 will be the focus to be assessed by investors after 2 consecutive weeks of still failing to break before.


If the current movement at this time manages to break the zone, it is not impossible for the price to be able to soar higher to test the next SBR zone around 0.73600.


However, if the price declines again, the RBS (resistance become support) zone of 0.72000 is expected to be tested again after the level has re -supported the price surge last week.


The ability of price movements to penetrate the RBS zone, investors will likely evaluate the lowest support zone ever reached at the end of August around 0.72000 to be hit again.