Market sentiment in this morning's Asian session was judged risky by investors following the fall in key Wall Street market indices with technology sector stocks among the biggest losers.
The situation prompted a decline in trade in Asian currencies such as the Australian dollar and the New Zealand dollar while the US dollar as a safe-haven currency recorded a slight strengthening.
The strengthening of the US dollar was also supported by an increase in US treasury yields during the New York session yesterday.
But investors are still wary of the movement of the US dollar ahead of this week's focus data of US inflation data and retail sales data, after the US NFP jobs report was published disappointing last week.
Observing the price movement on the chart of the AUD/USD currency pair, the price started to show a bearish pattern in the Asian session this morning after a horizontal movement throughout yesterday.
The price is also seen failing to maintain the price increase displayed at the beginning of the week before the price declined flat in the RBS (resistance become support) zone of 0.78300.
The price movement below the Moving Average 50 (MA50) barrier level again also gives an early signal for a change in the bearish trend on the AUD/USD chart.
Ending the Asian market session with a decline to the level around 0.77900, the price returned slow at the opening of the European market session.
With the pattern displayed, the price is likely to decline lower and the bearish trend formed will push the price decline towards the support zone at 0.76500.
If the price manages to make a re -rise past the price zone of 0.78300, a higher rise will test the high level reached at the beginning of the week around 0.78900.
For further gains, the higher price target will be concentrated at the 0.8000 level which was the main resistance tested in last February’s trading.
