As of this weekend, the performance of the US dollar remained dismal after last week’s FOMC meeting saw an interest rate hike by the Federal Reserve (Fed).
With the US dollar moving weaker, other major currencies in the market took the opportunity to trade higher against the king of that currency.
Like the Australian dollar, despite being burdened by risky market sentiment, it still managed to move upwards against the US dollar throughout the week.
On the price chart of the AUD/USD pair, the bullish pattern was successfully maintained until today (Friday) after the price surged above the 0.74000 level at the beginning of the week.
As of this afternoon’s European session, the price has managed to reach a high of around 0.75300, recording the latest 5 -month high.
The price movement remains in a bullish trend supported by the Moving Average 50 (MA50) support level on the 1 -hour time frame.
The previous price increase is expected to head to the high level at 0.75500. That level is a previously tested resistance zone at the end of October 2021.
While still displaying a continuous bullish pattern, investors are still vigilant for possible trend changes waiting for the US dollar to regain its strengthening rhythm.
For the price decline that occurs, the level of 0.74400 will be the focus for the price to test the RBS zone (resistance become support).
A decline beyond the MA50 support level will also signal for a change in the bearish trend.
The lower decline continues below the RBS zone of 0.74400 which in turn will move towards the zone around 0.73600.
