The bearish trend movement is more clearly displayed by the price on the AUD/USD currency pair chart at the close of last week's trading until it resumed earlier this week.
If one examines the movement last week, the price initially managed to show an initial increase to the zone around 0.74500 in the middle of the week.
However, after flattening at that high, the re -strengthening factor of the US dollar has triggered a severe fall in prices to hit the latest 5 -week low around the top of the 0.72300 zone.
This is due to the market’s follow -up reaction to indicators by Federal Reserve (Fed) Chairman Jerome Powell who confirmed an interest rate hike of up to 50 basis points next month.
Like most other major currencies, the Aussie dollar is no exception to receive the tempo of the currency’s strengthening king.
Until continuing into the Asian session this morning for the opening of trading this week, the price decline for 3 consecutive days since last Thursday has recorded 300 pips of decline hitting the level around 0.71700.
The 0.71700-0.71800 zone had previously been a support zone for the price in March trading which managed to see a higher spike on further movement.
However, with the significant downward momentum displayed, the price is likely to break through the zone to even lower levels this week.
The next decline in the price is seen to be heading towards the focus zone at 0.71000 which was also an important zone in last February's trading.
A rise in the price is quite difficult to anticipate, however if that happens the price is seen to return to last week’s resistance zone at 0.74500.
The rise should pass the Moving Average 50 (MA50) barrier on the 1 -hour time frame for an early signal of a bullish trend change again.
