The US dollar continued to show a significant strengthening towards the end of September trading by recording an 11 -month high of 93.70 USD index reading.
In addition, the strengthening of the greenback dollar was also supported by the 10 -year US treasury yield which was seen to be rising and tested the resistance level once reached at the end of June around 1.54%.
But investors also need to be more vigilant about the movement of the US dollar following the release of US consumer confidence data in the New York session yesterday has plunged to a 7-month low.
At the Senate Banking Committee conference, Federal Reserve (Fed) Chairman Jerome Powell went into more detail about inflation at this very worrying point than was noted at the beginning of the year.
Once again, the focus tonight is on a speech from Powell that will provide a glimpse and direction for the planned policy tightening.
Looking at the price chart of the EUR/USD pair, the price movement seems to continue to show a decline to the lowest level at the end of August around 1.16700 in the European session yesterday.
Meanwhile, ahead of yesterday's New York session, the price has seen an attempt to retest the 1.17000 level as the conference is underway before declining again and moving slowly until resuming trading in the Asian session this morning (Wednesday).
The price movement is seen still trading below the Moving Average barrier level (MA50) on the 1 hour time frame on the EUR/USD chart to maintain the bearish trend.
If the US dollar continues to strengthen, the price is expected to continue to decline and re -test the strongest support zone recorded at the end of 2020 trading around 1.16000.
On the other hand, if the price of the EUR/USD pair is able to show a more aggressive surge, the price is likely to pass the MA50 barrier level and give an early signal of a bullish trend change to return above the 1.17000 level.
The SBR (support become resistance) zone around 1.17500 remains the resistance level to test and the investor focus level to see the next movement reaction.
