Interesting for investors to watch is the price chart of the AUD/USD currency pair when a bearish pattern began to show at the opening of the early week yesterday.
In contrast to last week's movement which saw an increase exhibited from the beginning of the week until it reached the latest 7-month high before flattening out at the end of the week.
The Aussie dollar traded weaker against the US dollar on Monday yesterday, seeing a downward trend in prices continuing today (Tuesday).
While market sentiment seems to have been cleared by the release of positive Chinese economic data, political turmoil in New Zealand has also given the Aussie dollar a negative boost on regional trading partner factors.
In fact, published Australian retail sales data also showed a declining reading, adding pressure to the currency.
Therefore, the decline of the Aussie dollar has prompted further price declines on the AUD/USD chart in the Asian session.
The bearish movement of the price is increasingly displayed with the pattern of decline where the price is also seen moving below the barrier level of the Moving Average 50 (MA50) on the 1-hour time frame.
The drop in price is seen to go to the 0.70000 level to test the level that has been a support for the price last week.
If the price manages to break through that level, the decline will continue towards the 0.69000 concentration zone.
However, if the price manages to bounce back to make an increase, the resistance at the 0.71000 zone will again be the focus to be tested after the price flattened in that zone after last week's increase.
A successful breakout above the zone would mark a new high with a target to reach 0.72000.
