Observing the price movement on the chart of the AUD/USD currency pair, there was a bounce in the important zone of 0.66000 during last Friday's trading.
Does this already signal a change in price direction?
Over the past week, a bearish pattern has been displayed with the price plunge at the beginning of the week from the 0.67000 zone completing 100 pips when the price reached the 0.66000 zone on Friday.
This is following the changes that occurred on the trading of the US dollar currency which managed to show a recovery after the expectation to maintain a tight monetary policy in the United States (US) increased again.
In the last sessions, the price has shown a rebound testing the 0.66000 zone which is a support for the price.
The price rise above the Moving Average 50 (MA50) barrier line on the 1-hour time frame on the AUD/USD chart gives an early sign for the bullish trend to resume.
However, investors will look forward to the latest indicators this week to determine a clearer movement of prices.
In the event of a move higher, the price is expected to head back to last week's 0.67000 level to test that key resistance zone.
Once the zone is successfully passed, the price will record the latest 4-month high with the target reaching 0.67600.
On the other hand, if the price falls again, the 0.66000 support will be tested and the reaction shown will determine the next price course.
If the price keeps plunging down, it is clear that the bearish price trend continues and the price can reach around 0.65400.
