Most major currencies in the market earlier this week were seen still absorbing strengthening pressure by the king of the US dollar following reactions to US inflation data published last week.
The Australian dollar was among those that showed a significant depreciation against the US dollar as shown on the price chart of the AUD/USD currency pair.
In addition to the FOMC meeting that will be the focus this week that will have an impact on the US dollar, the Australian jobs data report will be given attention that will affect the movement of the Aussie dollar.
Examining the price movement on the AUD/USD chart last week, the price has exhibited a clear bearish trend change pattern over the weekend after moving horizontally initially at the beginning of the week.
With the resistance zone at 0.72300 being a barrier for the price to make a rise, the price has then slipped past the price support zone at 0.71800 last Thursday.
The decline first tested the focus zone at 0.71000 before a slight rise was seen in the Asian session continuing into the European session on Friday before the decline continued to fail to be contained again.
The price continued its decline below the 0.71000 zone to reach around 0.70400 in the last session of last week.
Continuing with the opening of market trading earlier this week, the price continued to decline with the latest low reached in the Asian session being at the level of 0.7000.
The price movement remains bearish moving below the Moving Average 50 (MA50) barrier level on the 1 -hour time frame which is one of the indicators for investors.
The decline is expected to continue if the US dollar remains strong and pushes the price to its latest 4 -week low with a target at around 0.69000.
However, if the price shows a rebound again, the resistance that is seen to be the initial target to be tested by the price is at 0.71000 before the rise beyond the zone will signal a change in trend.
