Sentiment remained unchanged seeing a recurring scenario on US dollar trading that continued to decline towards the end of the week.
Encouraging the weak US dollar, Federal Reserve (Fed) meeting committee members reiterated that they would maintain a loose current monetary policy even at rising inflation rates.
The US dollar depreciation situation is expected to continue ahead of the FOMC meeting minutes report to be published early Thursday morning to be the focus of investors in scrutinizing further details of the latest meeting by the Fed.
Other major currencies in the market continued to celebrate the weakness of the US dollar to trade upwards since the beginning of the week again.
Judging by the price movement on the EUR/USD chart, the price remained rising even though the Euro's performance was not very encouraging.
Data published in the European session yesterday for the latest reading of European economic growth for the first quarter of 2021 remained unchanged with a contraction at -0.6%. In fact, the preliminary reading for European employment growth for the first quarter of 2021 slipped to -0.3% lower than expected to slump to 0.1%.
Nevertheless, the Euro remained moving better against the US dollar with the upside on the EUR/USD chart having managed to break the 1.21800 resistance zone in the European session yesterday.
The price movement above the support level of Moving Average 50 (MA50) on the 1 hour time frame still signals the bullish trend is maintained. The latest high reached so far the New York session hit around 1.22360.
The higher rise is expected to break the 1.22500 level which was the resistance in last February’s trading.
Next, the key level at the height of 1.23000 will be the target of the bullish trend of the price.
But investors need to be vigilant if the price makes a decline again with the expectation of heading to the RBS zone (resistance become support) 1.21800-1.21500.
This zone will be the determinant of whether to support a price rise again, or a lower decline for a bearish trend change signal.
The continued decline is seen to head back to the previous RBS zone at 1.20900-1.20600.
