The US dollar was seen failing to maintain a strengthening pattern in early trading this week as exhibited last week after Federal Reserve (Fed) Chairman Jerome Powell’s speech came into focus.
Powell again signaled policy easing by stating that interest rates would not be raised until the labor market and inflation were stable.
The situation has dampened previous US dollar strengthening sentiment which saw indications for a tightening of monetary policy by the Fed.
Again giving room for other major currencies in the market to rise against the US dollar, the Euro currency was among those exhibiting a bullish pattern earlier in the week.
On the EUR/USD chart, the price showed an increase despite moving at a slower pace while investors await focused economic data for the manufacturing and services sectors in Europe in the European session, and in the United States (US) in the New York session soon.
Prices that have risen above the 1.19000 level continued yesterday’s rise reaching a high of around 1.19500 in the New York session and the horizontal price movement continued into the Asian session this morning.
With the bullish pattern featured, the price is likely to make a rise to test the resistance level at 1.20000.
If the higher rise manages to continue beyond that level, the price will head to the SBR zone (support become resistance) 1.20600-1.20900.
Meanwhile, if the price decline occurs again, the price zone of 1.19000 will be assessed whether it is able to support the price increase again or the price penetrates to lower levels.
The lower decline is expected to test the support zone at 1.18000 for the price to continue last week’s bearish trend.
