Failing to maintain the consolidation, the US dollar re -moved backwards in Wednesday’s trading yesterday giving room again for other major currencies to rise.
Previously, the US dollar had exhibited an energetic surge after the latest published US inflation data rose to a 13 -year high.
However, the situation did not last long following a dovish statement by the Chairman of the Federal Reserve (Fed) yesterday on the central bank's monetary policy.
Powell is seen as prioritizing the still unstable employment sector and says the rise in inflation is only temporary.
Indications for the Fed to continue to maintain such a loose policy have prompted investors to let go of U.S. dollar holdings to move on to higher -yielding assets.
On the chart of the EUR/USD currency pair, it can be seen that the price managed to rebound after experiencing a decline.
The rally above the 1.18000 level again reached a daily high of around 1.18370 at the end of the New York session before moving slowly continuing in the Asian session on Thursday morning.
The rally has also passed the Moving Average 50 (MA50) barrier level on the 1 -hour time frame to signal the uptrend again.
The bullish expectation is seen to retest the SBR (support become resistance) zone at 1.19000 after 2 weeks of the price moving below the zone.
A higher rise will push the price expectation to head to the previous focus level of 1.20000.
However, if the same situation is repeated where the price still fails to break the resistance zone and make a decline again, the price will hover again in the support zone around 1.18000.
If the zone fails to support a rebound, a lower decline can be expected heading to the next support zone around 1.17200-1.17000.
