Examining the price on the AUD/USD pair chart, it is seen to continue to lose throughout November trading until today (Monday) which has recorded a continuous 5 -week plunge.
The Australian dollar continued to be haunted by depression after being squeezed on deck due to the strengthening of the USD over the weekend as well as a weak reading at the time of the release of China’s economic data report.
The strengthening of the USD continues to be led by the aspect of confidence from investors who are of the view that the Federal Reserve (Fed) has already taken preparatory steps in implementing policy tightening immediately.
But the focus will be on the Australian central bank's (RBA) policy meeting which is expected to affect the movement of the Aussie dollar whether it continues to be gloomy or otherwise for this week.
The plunge also negates the excellent performance that is to be translated previously to return to hit the strongest support zone since September 2020 at 0.70000.
The price movement seems to have experienced a plunge of almost 100 pips at the close of last week’s trading and remained bearish after the price still moved below the Moving Average 50 (MA50) barrier level.
If the price at the support zone of 0.70000 is able to return to support the rise, the SBR (support become resistance) zone of 0.71000 will definitely be the first direction to be reached.
The rise reaching the SBR zone will indirectly begin to give an early signal of a change in the observed bullish trend that will test again to the next SBR zone at 0.72000.
But if the price movement continues to be pressed to continue the downtrend, the latest support zone targeted around 0.69000 will likely be the new focus of investors.
One more thing, the zone is also the main support zone which is considered to be the most invulnerable fort to be overcome in August 2015 until early 2016.
