A similar scenario occurred on the price chart of the AUD/USD pair following the strengthening of the US dollar against most major currencies earlier this week as the 2022 trade opener.
The price plunged 90 pips in Monday's trading yesterday after hovering at the high that has been tested since last weekend which is the resistance zone 0.72800.
The decline did not stop at the RBS (resistance become support) zone of 0.72300 before this but continued to the lower level reaching around 0.71830 until the end of the New York session.
The strengthening of the US dollar is expected to continue after being triggered by the surge in US treasury yields which surpassed the 1.60%level.
The Australian dollar failed to withstand the strengthening momentum of the US dollar and ended the previous bullish pattern.
However, in the Asian session on Tuesday morning, the price was seen to make a rebound on the AUD/USD chart with the 0.72300 zone expected to be a resistance before the price resumes its decline.
The decline is expected to continue will test the 0.71800 zone before making a lower decline targeting the focus zone around 0.71000.
However, if the bulls manage to break the 0.72300 zone, then investors will again expect the resistance zone at 0.72800 to be retested after failing to do so at the end of 2021.
