As expected, the rise of the Australian dollar did not last long as it came back under pressure by the re -strengthening of the US dollar.
Market sentiment is indeed at risk with the resurgence of Russia-Ukraine conflict tensions and is expected to influence the movement of the Aussie dollar which is sensitive to changes in current market sentiment.
Still, the Aussie dollar managed to soar on Tuesday yesterday after investors weighed hawkish indicators by a change in the Australian central bank’s (RBA) statement at a monetary policy meeting in the Asian session.
On the price chart of the AUD/USD pair, the price that has surged past the resistance level at 0.75500 meets the expectation to reach the high level at 0.76500.
But as soon as it touched the resistance level, the price eased again due to pressure from the strengthening of the US dollar in the New York session.
After last week’s NFP report failed to inject strengthening momentum against the U.S. dollar, the king of the currency finally began to show strengthening after hawkish comments by Federal Reserve (Fed) Governor Lael Brainard.
The decline on the AUD/USD chart however is supported by the Moving Average 50 (MA50) support level on the 1 -hour time frame if the movement in the Asian session is observed today.
Thus, the price still has the potential to continue rising as the movement above the MA50 level still signals a bullish trend.
If the rise can happen again, the resistance at 0.76500 will again be tested for the price to continue to post its latest high.
Beyond the resistance, the target for the next rise is at the high of 0.77600 which was previously the resistance zone in June 2021 trading.
However, if the strengthening of the US dollar continues to push the bearish price lower, the price is likely to pass the 0.75500 zone as well as the MA50 support level for a bearish trend movement signal.
Further decline is seen to be to the level around 0.74400 or lower can reach up to the 0.73600 zone.
