Looking at the price chart of the AUD/USD pair, the price seems to continue the downward trend displayed from the beginning of the Asian session (Tuesday) until the end of the New York market session.
The price has also recorded a plunge above 100 pips and the price movement has already passed the support level around 0.74600 and almost to reach the RBS zone (resistance become support) 0.74000.
The trend on display has also broken the Moving Average 50 (MA50) barrier level in the 1 -hour time frame to give a clearer movement signal to create a downtrend pattern.
Angkara’s dovish -toned statement hurled during the Australian Central Bank’s (RBA) policy meeting at the Asian session yesterday (Tuesday), it continues to invite poor performance and pressure on the Aussie dollar.
At a time of recorded weakness, the USD appears to be eyeing an opportunity to strengthen against the Aussie ahead of the release of important economic data as well as the FOMC meeting in the New York session soon.
If the price movement continues to maintain the decline, the RBS 0.74000 zone is expected to be tested again after the level has re -supported the price surge in the past.
The ability of the price to penetrate the RBS zone will allow investors to assess the nearest support zone once recorded in October trading around 0.73000 to be tracked again.
But if the current sentiment of the market changes and the price rebounds more violently, the high around 0.75500 will return to the focus after being tested many times before but it still failed to be torn.
If the price movement manages to break the high, it is very likely that investors will see the price reach the resistance zone of 0.76000 and will build a new high peak.
