Concerns over the easing of the Omicron variant have caused safe-haven currencies including the USD to disappear slightly and continue to give room for the Aussie dollar to strengthen.
The strengthening of the Aussie dollar was also driven by convincing optimism from the Australian Central Bank (RBA) despite the report of the meeting’s results meeting the market reach in maintaining policy.
There is also market speculation that a faster reduction in central bank bond purchases could also be a factor in why the Aussie managed to record an aggressive consolidation.
Examining the price on the chart of the AUD/USD pair saw the price is still unable to overcome the support zone of 0.70000 which is the most invulnerable bulwark since September 2020.
Due to these factors, the price movement is seen to have penetrated the RBS zone (resistance become resistance) around 0.71000 which also continues to show a climb of more than 100 pips.
The climb seems to be giving an early indication leading to a trend change and has moved above the Moving Average 50 (MA50) barrier level in the 1 hour time frame.
The next momentum is likely to see the price movement to return to the SBR (support become resistance) zone of 0.72000 which had previously driven the price increase.
If the price continues to surpass the SBR zone, it will totally strengthen investors' expectations for a more pronounced bullish trend for the next target to be able to reach the SBR zone of 0.73000.
But it is not impossible to see the price movement back to make a plunge where the support zone of 0.70000 will certainly be the main focus zone to be hit again.
The lower decline will push the price to try to break through the most resistant support zone since September 2020 to see the 18 -week low created.
