Risk -assessed market sentiment continued to put pressure on commodity currencies such as the Australian dollar which continued to move weaker against the US dollar in the market.
On the price chart of the AUD/USD pair, the price is seen to have plummeted in early trading of the week up to the support zone of 0.71000 after resuming the bearish pattern of the previous week.
However, after hitting the zone in last Monday's trading, the price bounced back around 80 pips to the resistance level of 0.71800 to test the SBR (support become resistance) zone.
Tuesday's trade also saw the price test the SBR zone but still failed to pass it and started giving early signals for a bullish trend change after successfully passing the Moving Average 50 (MA50) barrier level on the 1 -hour time frame on the AUD/USD chart.
Investors are likely to be vigilant awaiting the outcome of the FOMC meeting early this morning to determine the direction of price movements more clearly.
Prices resumed trading today (Wednesday) still slow since the Asian session market connected to the European session.
The bulls are expected to continue testing the resistance of 0.71800 before continuing higher on the bullish trend.
The targets for the next price increase are seen to be to the 0.72300 and 0.72800 zones before the price tests the 0.73100 height zone.
If the decline continues, the 0.71000 support zone will be tested again and is likely to be broken if the US dollar remains soaring.
The decline below that zone will record the latest 7 -week low with the next target to head to the 0.70000 support zone which was reached in early December last year.
