The chart of the AUD/USD currency pair saw a rally last week, but can the positive trend continue this week?
The driving force behind the price increase is the weakening effect of the US dollar which has given room for other currencies to rise including the Aussie dollar.
The latest economic data from the United States (US) gives a picture of risk, with the focus at the end of last week on the NFP jobs report for June which was judged to be rather gloomy.
Investors will hear Federal Reserve (Fed) Chairman Jerome Powell's testimony before the US Congress today and tomorrow which is likely to provide the latest indication of the direction of the central bank's monetary policy.
Next, the US inflation data will drive the market and also the movement of the US dollar towards the end of this week.
The AUD/USD chart has shown a continuous rise until yesterday's early week opening reaching a high of 0.67600.
There was a momentary drop in prices last Friday following the initial reaction to the publication of the NFP report, but the price crossed back after testing the support line of the Moving Average 50 (MA50) on the 1-hour time frame on the AUD/USD chart for a signal that the bullish movement will continue.
However, the price movement on Monday yesterday despite successfully reaching the height, however, shows a flat pattern.
Hovering around the MA50 line in the Asian session this morning (Tuesday) invites investor vigilance to assess the direction of further price movements.
If the rise continues, a break from yesterday's highs would expect the price to head towards the 0.68000 concentration level as well as record a recent 6-month high.
However, a change in the price direction is risky to happen based on the guidance from Fed Powell and evaluated on price movement signals.
If the price plunges, the 0.67000 zone is seen as the closest support to be tested and it is not impossible for the price to fall further if the US dollar strengthens again.
