Examining the price on the AUD/USD pair chart, it is seen to remain plummeting after creating the latest 10 -week high around 0.73000 in mid -January.
The dive is also close to once again tracking the most vulnerable support zone to be breached which is around 0.70000 as well as which it is considered to be the lowest level since September 2020 trading.
Logically the price movement also produces a new Lower Low (LL) and continues to move below the resistance level of the Moving Average 50 (MA50) to give a picture of a bearish trend.
The publication of the United States (US) Gross Domestic Product (GDP) data which recorded a positive reading at all continues to support the USD to be strong during the start of this 2022 trade.
Giving support for the USD’s dominance as the king of the currency is in the wake of hawkish statements at the recent FOMC meeting seeking to expedite the implementation of tapering measures.
The outlook will also indirectly boost investor confidence to see the USD continue to strengthen towards the close of January.
Thus the current support zone at 0.70000 is expected to continue to be evaluated to see whether the zone is able to pass or will return to support the price movement to soar.
That is, a more severe decline over the support zone will push the price to the next support zone of 0.69000 and thus will record the latest 12 -month low.
On the other hand, if the price makes a surge again, of course the SBR zone (support becomes resistance) at 0.71000 and the trendline resistance is expected to be tested again to create a Higher High (HH).
However, a strong surge to bring back signs of a bullish trend will be seen if the price movement has the potential to tear the resistance trendline and reach the 0.72000 zone.
