Looking at the price chart of the AUD/USD pair, the price has already plunged more than 70 pips starting from the European session yesterday (Tuesday) until the end of the trading session.
The Aussie dollar appears to have failed to gain strength even though Chinese producer prices have soared their highest in 26 years due to rising global commodity prices.
Meanwhile, dovish statements made during the previous Australian central bank (RBA) policy meeting have indirectly invited pressure on the Aussie dollar.
While the USD has the advantage to display dominance against the Australian dollar despite still being overshadowed by the uncertainty caused by the assessment of the Federal Reserve's (Fed) focus data after the policy tightening decision at the last FOMC meeting.
The surge was also seen to continue at the opening of the market session today (Wednesday) and also created the latest low in the 4 -week period around 0.73530.
The price movement has also moved below the Moving Average 50 (MA50) barrier level for bearish signals and has completely erased the best performance recorded in October.
The ability of the price to break the SBR (support become resistance) zone of 0.74000 is like giving an indication to investors for the price to perform a plunge action to the support zone of 0.73000.
If observed the support zone is the resistance zone at the end of September before being able to be overcome in early October to continue to record a climb up to the level of 0.75500.
But if the price movement returns to make an aggressive jump, the first time the SBR 0.74000 zone is expected to be the earliest direction before the price continues to climb higher.
While the level around 0.74600 may be tested first and the price is likely to reach the resistance zone at 0.75000.
