AUD/USD Upside Attempt Blocked At $0.6700 Zone


The weakening of the US dollar will open up space for other major currencies in the market to increase their trading value again when the latest indications are expected this week.

The Australian dollar was among the gainers in the week as Australian inflation data also came in with an increased figure for the April report.

The US dollar was affected by the economic growth data of the United States (US) and the PCE price index which was published with less encouraging figures.

Adding to the pressure on the currency king, the ISM survey of the US manufacturing sector published in the New York session yesterday showed a contraction lower than forecast.

Investors' focus this week will be on the US jobs data report which will be the next indication for the Fed to set their monetary policy.

Examining the price chart of the AUD/USD currency pair, a bullish pattern has been displayed in trades towards the end of last week.

The price increase continued at the opening of the early week yesterday with the price rising almost reaching the 0.67000 level which is seen as a concentration resistance zone where it was also tested in mid-May trading.

Continuing today's trade (Tuesday), the price tested the 0.67000 resistance zone before pulling back down to around 0.66700 at the close of the Asian session.

The price is still hovering above the Moving Average 50 (MA50) support line on the 1-hour time frame on the AUD/USD chart which maintains a bullish movement signal.

The price increase if it continues will try to break through the 0.67000 resistance before recording the latest 5-month high.

The target for a higher price increase after this is to reach around 0.67700.

However, if the price continues to slide rapidly down past the MA50 support line, investors can expect the price to reach the previous week's support level at 0.66000.

For a lower decline if still extended it is likely to be able to reach around 0.65400.