The current market situation has also clearly had a negative impact on the trading of the Australian dollar currency as it has seen its value continue to decline since last week.
In addition to the strengthening of the US dollar which buried most major currencies, the geopolitical tension factor also had an impact driving the weakness of the Aussie dollar.
Investors are cautiously awaiting the actions Israel will take after facing an airstrike by Iran last weekend.
Continued war tensions will continue to weigh on the Aussie dollar while the US dollar will take advantage to continue strengthening.
As observed on the price chart of the AUD/USD currency pair, the price has plunged since last week and the decline continued at the opening of this week's trading.
From the high level of 0.66400 reached last week, the price has plunged past the 0.65000 level.
On Monday yesterday, the price showed a weak rally at the early opening of the session, but failed to touch 0.65000 before continuing to decline lower to around 0.64400 at the end of the New York session.
Continuing trading in the Asian session this morning (Tuesday), the price continued to decline from the 0.64400 level to the 0.64100 level.
Price movement below the Moving Average 50 (MA50) barrier line on the 1-hour time frame on the AUD/USD chart suggests that the bearish trend will continue.
Expectations of a further drop in price will test the 0.63700 level that was the focus of last year's November trading.
For the next target, the 0.63000 support zone will be tested after the zone successfully prevented the price from falling lower last October.
As for the expectation of a price increase if it happens, the 0.65000 zone will be seen as a target that will be tested before the price signals a change in trend again.
Crossing that zone will expect the next resistance at 0.65400 and will show a reaction to the next price direction indicator.
