Can AUD/USD Keep Breaking 5-Month Highs?

<p>&nbsp;Changes in the direction of movement of the US dollar, especially in the New York session yesterday, have had an impact on the current movement of other major currencies in the market.</p><p><br /></p><p>Like the Australian dollar, a surge in value to recent highs was successfully recorded, but fell back again when the US dollar showed strengthening yesterday.</p><p><br /></p><p>Data from the United States (US) consumer confidence survey as well as home sales were published with excellent figures for the November report, again lending support to the recovery of the US dollar.</p><p><br /></p><p>Not yet finished, investors will focus on the US economic growth data tonight before turning to the PCE price index data on Friday.</p><p><br /></p><p>When examining the price chart of the AUD/USD currency pair, the price has successfully jumped from the 0.67000 zone to reach the latest 5-month high around 0.67700 last Tuesday.</p><p><br /></p><p>However, in yesterday's trading on Wednesday, the upward momentum disappeared, seeing the price level off before a plunge occurred at the end of the New York session.</p><p><br /></p><p>Start making investors wary when the price moves back below the Moving Average 50 (MA50) barrier line on the 1-hour time frame on the AUD/USD chart.</p><p><br /></p><p><br /></p><p>The slow price increase in the Asian session this morning (Thursday) is also seen to be hindered by the line which signals that the price will be difficult to continue its climb.</p><p><br /></p><p>The initial drop will be expected to re-approach the 0.67000 zone which is the RBS (resistance becomes support) price zone and the reaction around that will give an indication of where the price will go next.</p><p><br /></p><p>If it breaks down, the bearish signal will increase the tendency for the price to plunge to the target level at 0.66000.</p><p><br /></p><p>However, if the price surges past the 0.67000 resistance, the record of the latest high level will continue with the next focus being at 0.69000.</p>