The US dollar remained depreciated since the beginning of the week against several other major currencies in the market with investors increasingly optimistic about the global economic recovery which has boosted demand for high-risk assets.
Being the focus of investors yesterday, Federal Reserve (Fed) Chairman Jerome Powell stated that the central bank would not raise current interest rates.
The Euro however failed to maintain its strength with the depreciation of the US dollar when the price movement on the EUR / USD pair chart stuck at the resistance level of 1.21800.
The resistance zone 1.21800-1.21500 was also tested last week but failed to break before the price dropped again.
European inflation data published with unchanged figures compared to previous readings restrained the momentum of price consolidation.
However, the decline in the EUR / USD chart is not so significant, instead it is flat above the Moving Average 50 (MA50) support level in the 1 hour time frame of the price movement which still gives a bullish trend indicator.
A higher rise in trading towards the weekend is expected to pass the current resistance zone before heading to a higher focus around 1.22500.
On the other hand, if the price drops below the support level of MA50 after failing to break through the resistance zone for 2 consecutive weeks, the price will return to decline to zone 1.20900-1.20550 in anticipation of a bearish trend change.
A lower decline is seen to lead to the focus level of 1.20000 before re-testing the monthly support level at 1.19500.
