The rally on the AUD/USD chart last week stagnated at the resistance level of 0.72300 due to changes in current market sentiment.
As reports of the withdrawal of Russian troops from the Ukrainian border, risks in the market began to subside and made the US dollar move weaker while the Australian dollar rose.
Thus, it can be seen that the price hovered around the high of 0.72200 last week before the tensions of the Russia-Ukraine crisis rose again over the weekend making the US dollar strengthen in the last sessions of last week and push prices again.
The decline over the weekend was seen to be supported at the RBS (resistance become support) zone of 0.71700 after the resistance zone at 0.72300 failed to be broken.
Continuing trading earlier this week, in the Asian session this morning (Monday) the price was seen again making a rise from the RBS 0.71700 zone and heading back to the 0.72300 resistance zone on trading that continued into the European session.
Investors will observe the price reaction on the resistance zone before entering trading into the New York session shortly.
Despite the initial rise in prices, analysts are still of the view that prices are more likely to make a decline as market sentiment remains risky as the ongoing Russia-Ukraine crisis will give an advantage to the US dollar.
A successful strengthening US dollar will re -press the price and is likely to pass the RBS 0.71700 zone.
The lower decline will lead to the focus zone for previous weeks' trading at 0.71000.
However, it is not impossible for the price increase to continue and break the price zone of 0.72300 with the higher upside target is towards the 0.72800 zone.
