The price movement on the AUD/USD pair chart was seen to successfully end last weekend's trading to the latest high after breaking the resistance zone at 0.71000.
With market sentiment recovering from the risks, the Australian dollar managed to move better against the US dollar which remained with its dismal performance for several weeks.
While the US dollar is moving weak, investors remain vigilant for expectations of a strengthening US dollar that could occur at any time if market focus begins to shift back to policy tightening actions by the Federal Reserve (Fed).
Last week, the bulls on the AUD/USD chart were several times blocked at the 0.71000 zone resistance before the price finally managed to break it last Friday.
Remaining above the Moving Average 50 (MA50) support level on the 1 -hour time frame, the price is expected to continue the bullish trend movement further this week.
The rise to the 0.71650 high last Friday continued again at the opening of trading earlier this week testing the latest resistance zone at 0.71800.
Continuing into the European session this afternoon, if the price continues to rise, the latest high will be recorded again with a possible price target at the 0.72300 zone.
While investors are optimistic about the bullish movement, they still need to take into account the probability for the price to make a turn.
A price decline can occur if market sentiment starts to drive prices to make another decline.
The declining price will re -test the 0.71000 zone which is seen to be a support for the price.
If the price stays lower and then moves below the MA50 support level, investors will be ready for a more aggressive decline of the price after the bearish trend signal.
The price will head to the previous focus zone like 0.70400 or lower at 0.70000 zone.
