The 10 -year U.S. treasury yield that managed to hit its latest 20 -week high was not at all able to drive the USD to strengthen again.
This is because, it is still constrained by reports stating that the Federal Reserve (Fed) is likely to delay the implementation of policy tightening until 2023.
In addition, the publication of permanent European inflation data has provided an opportunity for the Euro to continue to show strength in times of weakness recorded by the USD.
Judging by the price chart of the EUR/USD pair, the price was seen to make a slight decline in the European session yesterday (Wednesday) before the price returned to brisk at the opening of the New York session.
The price movement also seems to be just a ‘rebounce’ from the trendline support and the reaction of the surge is a little bit giving high confidence to investors for the price to remain with the uptrend pattern.
Entering the Asian session today (Thursday), the price has already resumed its gains by re -testing the previous 2 -week high reached in Tuesday’s trading around 1.16675.
A stronger increase will see the price test the SBR zone (support become resistance) 1.17000 if the price movement on the EUR/USD chart continues to excel to record a bullish trend.
While if the SBR zone is successfully broken, the high probability will see the price may reach the resistance zone which still remains the focus of investors at 1.18000.
On the other hand, if the price returns to decline, the RBS (resistance become support) zone of 1.16000 is expected to be tested again and may give an early signal to make a trend change.
The superior possibility will see the price movement hit the 2021 low again at 1.15300 which is also the support zone that has supported the price surge in the past.
