Market sentiment is already starting to recover from the previous risky environment?
Investors are now seeing a depreciation for the US dollar while high -yielding currencies such as the Australian dollar and the New Zealand dollar are showing excellent gains.
This is an indication for investors for a recovery in current market sentiment which is seen to be driven by the easing of movement restrictions in China following the latest coronavirus outbreak over the course of the day, which will support the resumption of global economic growth.
It is interesting to examine the price movements on the AUD/USD currency pair chart that react to the current sentiment changes in the market.
The depreciating situation of the US dollar that has started since last week pushed the price to hold above the 0.7000 level until the end of the week with the weekly high level reached being around 0.70700.
Resuming trading at the opening earlier this week saw the price rise continued in the Asian session surpassing last week’s highs and reaching into the 0.71000 focus zone entering European session trading.
The price remains signaling for a bullish move with the price moving above the Moving Average 50 (MA50) support level on the 1 -hour time frame on the AUD/USD chart.
Higher gains if successful continued the price will target some previous focus levels such as at 0.71800 and the high of 0.72600.
However, investors remain vigilant if they get a signal for a change in the direction of the price again, denying the expectation to continue the uptrend.
The rebound is seen to test the 0.70400 level before reaching the 0.7000 level, among the levels that were the focus of last week's trading.
Further decline in the price is seen to lead to the level of 0.69000 before testing the main support zone at 0.68300.
