Important economic data measuring US consumer confidence, which recorded encouraging readings in yesterday's New York session, continued to support a significant strengthening of the USD.
Investors are also looking forward to the release of US Gross Domestic Product data to be released in the New York session tomorrow (Thursday) to assess indicators of economic growth for the third quarter.
Meanwhile, the deck due to the weakness of the Euro currency influenced by the possibility of dovish statements at the ECB policy meeting continued to give the USD an opportunity to display strengthening.
Examining the price chart of the EUR/USD pair is seen to have started a surge attempt in the European session (Tuesday) and tested the resistance level of the Moving Average 50 (MA50) on the 1 hour time frame.
But then as soon as the price touched the MA50 at the opening of the New York session (Tuesday), the price movement trend seems to continue to plummet lower, making a decline of more than 40 pips.
At the beginning of the Asian session today (Wednesday) saw the price has formed a ‘gap’ down on the price chart before closing again with a bullish pattern to head back to the SBR (support become resistance) zone of 1.16000.
The 2021 low reached in mid -October around 1.15300 is still the focus zone that is likely to be hit if the price movement remains with a bearish trend.
The lower bearish pattern will see the latest record lows of 2021 once again created which will likely head to the strongest support zone at 1.15000.
If the price movement flies high again past the SBR zone of 1.16000, the price is expected to be able to reach back to the weekly highs that remain restraining the price increase at 1.16700.
A more aggressive rise will see the price likely to head to the SBR 1.17000 zone and indirectly investors will evaluate the price movement to make a change in the bullish trend.
