The US dollar moved weaker in the market and was even more pronounced in the New York session yesterday ahead of a statement by Federal Reserve (Fed) Chairman Jerome Powell in an early Thursday morning FOMC meeting expected to renew a looser policy.
The depreciation of the US dollar against other risky currencies was also driven by hopes of a pandemic recovery following the International Monetary Fund (IMF) raising its global growth forecast for 2021.
If you look at the price movement on the EUR / USD currency pair chart, the price shows a bearish pattern at the beginning of the week and until yesterday has reached the level of around 1.21100.
However, the price increase was displayed in the New York session to the previous focus zone at 1.21500-1.21800.
Rising prices that pass the Moving Average 50 (MA50) barrier over the 1 hour time frame of price movement also provide early indications for a bullish trend.
Investors will be waiting for the price to break through the resistance level of 1.21800 for a clearer signal of further price movement.
A higher increase is seen to test the SBR zone (support become resistance) 1.22200 which has been the focus in previous weeks.
However, if the price falls again below the 1.21500 level and the MA50 support level, the decline is likely to continue further at the beginning of the week.
The price support zone is seen at 1.20900 before the price continues to plunge low potentially heading back to the level of 1.20000.
