Starting trading at the opening of this week, the price on the chart of the AUD/USD currency pair showed a decline in the Asian session to a lower level than last week, thus recording the latest 4 -month low.
Market sentiment that remains risky is seen to continue to weigh on the movement of the Aussie dollar while the advantage is held for the safe-haven currency of the US dollar.
Scanning last week’s trading, the price has managed to make a rise to the 0.72600 high during the price reaction after the FOMC meeting which saw the initial depreciation of the US dollar.
But the US dollar, which strengthened again towards the weekend ahead of the US NFP jobs report, has pushed the price on the AUD/USD chart back to the 0.71000 focus zone.
Trading on Friday was seen hovering below the 0.71000 zone with a gloomy price reaction after the US NFP report was published.
Yet resuming trading earlier this week, the price is seen making a lower decline past last week’s support level around 0.70300 and as of 1.00 pm, the price has reached the 0.70000 level.
The 0.70000 zone is an important support for the price which has previously managed to curb the fall in lower prices in December and January trading.
The price remains signaling a bearish trend with a movement below the Moving Average 50 (MA50) barrier level on the 1 -hour time frame on the AUD/USD chart.
A lower decline would be expected for the US dollar’s tendency to continue its strengthening after the Federal Reserve (Fed) raised interest rates at last week’s meeting.
The lower drop below the 0.70000 level is expected to record the latest lows again for a period of 2 years with the target heading towards the level around 0.69000.
But on the other hand if the price makes a rebound, the 0.71000 zone will be an important resistance to test before the price gives an early indication of a trend change.
The upside is seen to retest the highs reached last week before heading higher to around 0.73000.
