Expected to continue the strengthening momentum, instead the US dollar ‘rested’ at the beginning of the market opening this week declining again from the 2 -month high reached.
Despite showing a decline, the US dollar was still seen moving strongly against other major currencies in the market as investors awaited a speech by Fed Chairman Jerome Powell early Wednesday morning.
The New York market session also failed to re -strengthen the movement of the US dollar following the rise in the Wall Street stock market.
The price on the chart of the EUR/USD currency pair rose again after testing the lows around 1.18500 to rise again above the 1.19000 level.
Market analysts do not rule out the possibility of the price giving an early signal for a reversal of the trend after the rally passed the Moving Average 50 (MA50) barrier on the 1 -hour time frame of the price movement.
But it is still too early to say while waiting for a clearer signal. It is also possible that the price increase is only a correction situation before the price resumes the decline.
If the decline continues, the support zone around 1.18000 will be the focus level that will be tested after the price falls lower past the support level of 1.18500 yesterday.
However, if the price manages to continue rising again, the initial target level is seen to be in the price zone of 1.2000.
Passing the resistance in turn will push a higher rise to the SBR zone (support become resistance) 1.20600-1.20900.
Data on economic sector activity in Europe and the United States will be the focus of investors and will influence the movement of the US dollar and the Euro.
