Looking at the price chart of the AUD/USD pair, the price has risen around 50 pips at the opening of November trading in the European session yesterday (Monday) until the end of the session.
Yet the price movement is still moving horizontally and volatile in the resistance zone of 0.75000 and remains traded at the resistance level of Moving Average 50 (MA50) on the 1 hour time frame.
Entering the Asian session today (Tuesday), the price appears to have made a significant decline in the decision by the Australian Central Bank policy meeting released just now.
True to the forecast expectations that the Reserve Bank of Australia (RBA) took steps in maintaining policy easing altogether has resulted in the Aussie dollar moving weakly after the meeting.
To the surprise of investors, the RBA announced to end its bond yield target for April 2024 at 0.1% and keep interest rates at 0.10% unchanged.
The weakness displayed is also seen as very severe against the USD currency which is currently investors are more wary of various important data that will be published this week including the US NFP employment report and also the FOMC meeting.
Assuming the price movement continues to plummet, the support level around 0.74600 is expected to be retested before giving a clearer initial indication to make a bearish trend change.
A significant decline will see the price movement reach the RBS zone (resistance become support) 0.74000 which was the starting level of the price surge in the past.
Yet if the price manages to record an excellent performance to soar, the 15 -week high reached last week around 0.75500 is expected to be tested once again.
A stronger rise will see the price move through the highs to reach the resistance zone of 0.76000 and then will record the latest highs.
