Commodity currencies including the Australian and New Zealand dollars traded higher at the start of the week against the volatile US dollar after investors looked into last week's key economic data.
Market sentiment is still being monitored with concerns about the banking crisis making investors cautious as if the risk increases again, the commodity currency may shrink again.
The Australian dollar is seen to have managed to rise to a 4-week high against the US dollar with the bullish pattern displayed yesterday.
On the chart of the AUD/USD currency pair, the price has reached a high of 0.68000 yesterday, but the strengthening of the US dollar in the New York session pushed the price down a bit before the price closed at around 0.67800.
The price movement that is still above the support level of the Moving Average 50 (MA50) on the 1-hour time frame on the chart since last week, remains a signal for potential price increases.
Continuing the trade today (Tuesday), the price is hovering at the 0.67700 zone which is close to the MA50 support level, testing the zone that was previously a resistance for the price.
If the price bounces up, the bullish pattern will continue before the price rises above yesterday's high.
Next, the latest high level will be recorded again with the target to reach up to 0.69000 after the 0.68300 zone is successfully penetrated.
However, if the price shows a lower plunge and also crosses the MA50 level, the initial sign for the bearish pattern of the price to start will expect a decline to the concentration level of 0.67000.
A lower decline if continued is seen to test the 0.66500 zone after showing a more clear bearish movement.
