Looking at the price chart of the AUD/USD pair, the price continues to record its latest 6 -week low around 0.72800 reached at last week’s close.
However, as soon as it touched the lowest level in the last Asian session (Friday), the price movement was seen to increase 90 pips until Monday's trading session before falling again today (Tuesday).
The price trend is also seen to still maintain the downtrend pattern even though the price continues to move above the Moving Average 50 (MA50) barrier level and is often an early indicator for a trend change.
It seems that the dovish mixed statements hurled by the Australian central bank (RBA) during the minutes of the policy meeting at the start of the Asian session this morning continue to have adverse implications for the Aussie dollar.
The USD, on the other hand, continued to strengthen after being led by rising inflation leading to the release of US retail sales data to be published in the New York session.
If the price movement continues to show a decline, the probability of the support zone 0.73000 is expected to be tested and then to be evaluated by investors to anticipate the next expectation.
The ability of the price to break the support zone will see the signal for the price on the AUD/USD chart retest the 6 -week low of 0.72800 before continuing to decline.
However, if the price continues to be able to show a more significant increase, the 2 -week resistance zone which becomes the SBR (support become resistance) zone of 0.74000 is likely to be reached.
While a strong shadow for the price movement to remain soaring is assuming the price returns to reach the resistance zone of 0.75000 and will at all give a clear signal for bullish.
