Market sentiment is back to risk again?
The stock market has experienced a decline following the latest report that slightly disturbed the market on the Russian and Ukrainian crises which are seen to be heating up again.
It was reported that there were mortar and bomb attacks by Ukrainians in several locations of the LPR (Luhansk People’s Republic) according to Russian media, Sputnik.
High -yielding and sentiment -sensitive currencies such as the Australian dollar and the New Zealand dollar are back under pressure while the US dollar is again showing strengthening.
At the start of the Asian session, published Australian employment data reports were seen to support the Aussie dollar when there was an increase in jobs in January although no increase was forecast.
However, market sentiment which is seen as a risky return has had the effect of re -depreciating the Aussie dollar in the market heading into the European session.
On the price chart of the AUD/USD pair, the price has shown a rise for 2 consecutive days after the price decline at the beginning of the week.
The rise from the support level of 0.71000 has passed the resistance at 0.71800 and the rise that continued at the beginning of the Asian session this morning reached the level of 0.72100.
However, the price has made a rebound of around 60 pips following the change in market sentiment to drop to the level of 0.71500.
But the Moving Average 50 (MA50) support level on the 1 -hour time frame that was hit again saw the price rebound to around 0.71900 in the European session.
While investors are cautious ahead of the opening of the New York session, the decline is expected to retest the support zone at 0.71000.
And a lower decline for a more obvious bearish trend change is seen towards the 0.7000 level and the 0.69700 support level.
However, if the price continues to rise, the resistance around 0.72500 will be tested again before the continued rise will lead to the expected level at the height of 0.72800.
