Expectations for a soaring currency king appear to have faltered as the U.S. dollar depreciated more sharply after U.S. inflation data for March was published with rising figures.
Market sentiment was seen to be mixed while US treasury yields showed a sharp decline towards the 1.60% level after reaching an early rise touching the 1.70% level yesterday.
The depreciation situation of the US dollar is seen to open up room for other major currencies in the market to strengthen until the weekend trading.
Although German and European economic sentiment survey data published yesterday recorded declining figures, the Euro managed to strengthen in the New York session following the depreciating US dollar.
On the chart of the EUR/USD pair, the price has rebounded above the 1.19000 level heading up to the resistance zone at 1.19600 before the slowing price around it resumed in the Asian session on Wednesday morning.
If the situation continues, the price is expected to continue rising towards the 1.20000 focus level. This price zone will be tested to signal investors for the direction of further price movements.
If the price declines again in today's trading, the decline will return to the level of 1.19000 which will be the support level for the price.
A lower decline will signal a clearer bearish trend back to the price to head up to the RBS (resistance become support) zone of 1.18000.
