What happened to the price movement on the AUD/USD chart yesterday? Prices fluctuate aggressively.
None other than affected by the crisis of the Russian-Ukrainian war that is currently the concern of the whole world.
Russian President Vladimir Putin, took a drastic step by launching an attack on Ukraine yesterday morning with aggression from every angle by the Russian military.
The currency sensitive to market sentiment moved in the direction of expectations but there was uncertainty in price movements during the New York session with reactions by world leaders increasing sanctions on Russia.
The AUD/USD price chart yesterday plunged more than 100 pips as the Australian dollar weakened while the US dollar strengthened in the wake of the Russian attack.
If observed, the price has made a decline of around 180 pips from the high level of 0.72800 reached last Wednesday to the support zone of 0.71000 in the New York session on Thursday.
But the end of the New York session yesterday came as a bit of a surprise to investors when the price rebounded around 80 pips testing the SBR (support become resistance) zone of 0.71800.
The rise did not stop there but continued in the Asian session this morning (Friday) to the level of 0.72000 testing the Moving Average 50 (MA50) barrier level on the 1 -hour time frame for further price movement signals.
If the upside continues, the next resistance to be tested is seen at 0.72300 before the price bounces back towards the 0.72800 high zone this week.
On the other hand, if the war crisis heats up and pushes the US dollar back to strengthen, the price will be pressed lower again towards the 0.71000 zone tested yesterday.
For the bearish target for a longer period, the bearish trend movement of the price will push the price decline up to the level of 0.70000.
