After the price increase was displayed at the end of last week's trading on the AUD/USD currency pair chart, the price reopened lower again at the beginning of trading earlier this week with a gap difference of around 50 pips.
This is due to the development of the Russian-Ukrainian war crisis continues to drag on to this day causing market sentiment to remain volatile.
Despite reports that Russia is ready to negotiate with Ukraine, investors still see the risk of a crisis continuing to increase following Russia’s violent invasion of Ukraine over the past week.
Both the US dollar and the Aussie dollar are sensitive to market sentiment, respectively, so any recent developments regarding the crisis will drive currency movements.
The opening price of the Asian session early this morning was seen returning to the focus zone at 0.71800 after the price increase at the close of last week’s trading reached the resistance level at 0.72300.
Investors are likely to remain vigilant at the beginning of the week while waiting for clearer signals for the direction of further price movements.
If the price tends to continue the decline, the price support zone at 0.71000 is seen as a target to be tested like last week’s decline.
For the lower decline to continue the bearish trend, the price is expected to reach up to the level of 0.70000.
On the other hand if a price rise again occurs, the initial resistance that the price will test is at 0.72300 again.
Next, the continued rise will lead to the resistance zone at 0.72800 which was reached by the price last week before a significant drop in the price following the war reaction that broke out.
Investors will also focus on the Australian central bank's policy meeting on Tuesday which will affect the movement of the Aussie dollar.
