AUD/USD Falls to Lowest Level of the Year!

thecekodok

 Market sentiment is still assessed in a risky situation for investors due to the United States (US) debt ceiling issue being the main concern at the moment which is still stuck in reaching a solution.


If an agreement in the discussion of the matter fails to be reached before the June 1 deadline, the US economy is in dire straits and will have a major impact on the whole world.


At this point, market movements are uncertain while the US dollar as a safe-haven currency is still in demand.


Compared to most other major currencies, the US dollar managed to maintain its strengthening albeit not significantly towards the end of the week.


As on the price chart of the AUD/USD currency pair, the price is seen to resume a downward pattern this week after leveling off last week.


The decline that continued until yesterday's New York session was seen to have reached the concentration level of 0.65400.


Analysts see prices that continue to move below the Moving Average 50 (MA50) barrier on the 1-hour time frame on the AUD/USD chart to continue the decline lower.



Prices moved slowly in the Asian session this morning (Thursday), but movement is expected to be more vigorous in the New York session with the reaction to the US economic growth data to be published.


If the US dollar continues to strengthen, the price will continue to decline to lower levels with a target to reach around 0.63700.


However, if the price bounces back from the 0.65400 zone, a break through the MA50 barrier will prompt a move higher after signaling a trend change.


The price will continue to rise towards 0.66500 or to resistance at 0.67000.