The market movement from the beginning of the week, which is still mixed, makes investors cautious ahead of some important economic data towards the end of the week, especially the United States (US) NFP employment report.
Examining the chart of the AUD/USD currency pair which is one of the favorite choices of traders, the price movement is seen to be flat throughout the past week until continuing at the beginning of this week.
If observed, the price still remains below the 0.67000 zone which is seen as resistance for the price.
Changes in the US dollar made the price move in a slower range from last week.
China's manufacturing and services PMI data published last Sunday were seen as somewhat lackluster, also having a negative impact on Aussie dollar trading.
Therefore, the price on the AUD/USD chart was seen to decline at the beginning of the week before there was a change in US dollar trading that changed the direction of price movement.
The US dollar strengthened slightly at the beginning of the week, but weakened again in the New York session yesterday as the market reacted to Federal Reserve (Fed) Chairman Jerome Powell's speech at the ECB forum on monetary policy.
The price has returned to display a slow increase until continuing into the Asian session this morning (Wednesday) and is seen to have crossed the Moving Average 50 (MA50) line on the 1-hour time frame on the chart as an early signal for the pattern of price increases to continue.
If there is an increase in the price in the following sessions, the 0.67000 resistance zone will be tested to be broken after the zone has been immune to blocking attempts to increase since last May.
After the resistance is successfully breached, then the price is able to rise higher towards the next focus target such as around 0.67700.
On the other hand, if a decline occurs, the price will either hover in the horizontal zone from last week, or drop lower to the 0.66000 level.
The price reaction around this important support zone will give an indication of the direction of further price movement with the possibility of a lower risk of falling.
