The European session on Tuesday was surprised by the strengthening of the US dollar, which buried most of the other major currencies in the market before easing again in the New York session.
Analysts do not see a clear factor supporting the strengthening of the US dollar while the market is still moving in a risky environment with high volatility.
However, it is likely that investors have already begun to expect the US dollar to strengthen ahead of the minutes of the FOMC meeting that will be published early Thursday morning.
In addition, concerns over reports of an increase in Covid-19 cases in China that could push pressure on the global market will also give an advantage to the safe-haven currency US dollar.
The Australian dollar currency was among those affected by a significant depreciation yesterday despite initially moving positively in the Asian session.
It can be observed that the price movement on the AUD/USD currency pair chart recorded a daily decrease of around 140 pips yesterday.
At first, the price rose to the level of 0.68300 in the Asian session before in the next session the price has plunged to the level of 0.67000.
The level is also among the focus zones and the price has also bounced back from the zone to around 0.67600 before closing the end of the New York session trading around 0.67200.
The situation changed again in the continued trading today (Wednesday) when the price increase was exhibited again since the Asian session.
The price has broken through the Moving Average 50 (MA50) barrier level on the 1-hour time frame on the AUD/USD chart for an initial signal of a bullish trend change and heading back to the 0.68300 zone.
If the price manages to break through the height zone, the resistance zone at 0.69000 will be the target for a higher increase.
However, on the other hand if the price plunges again, the support level at 0.67000 reached yesterday will once again be tested.
Breaking through that level will push the price towards around 0.66500 to test the support zone.
