What has happened to the USD?
Although the 1o -year treasury yield of the United States (US) recorded an increase, it is seen as still failing to drive the king of the currency back strong.
That has been prompted by a Reuters report showing a majority of economists are of the opinion that the Federal Reserve (Fed) will delay policy tightening until 2023.
This aspect indirectly gives a hint that refutes the Fed's previous claim that it wants to implement a reduction in bond purchases (tapering) as early as November.
If you look at the price chart of the EUR/USD pair, the price movement has finally managed to break the resistance level of 1.16000 successfully and reached the latest 2 -week high.
The price is also seen to have produced a jump of over 90 pips so far this week's trading before a slight decline in the New York session yesterday (Tuesday) which is likely to make HL (higher low).
The price movement continued to record gains in the Asian session today (Tuesday) and remained traded above the Moving Average 50 (MA50) barrier level at the 1 -hour timeframe for a clearer bullish signal.
The next rise is expected to return to the SBR (support become resistance) zone of 1.17000 after the price showed a plunge below that level at the end of September trading.
The probability of a more aggressive movement to maintain the uptrend pattern will see the price on the EUR/USD chart to climb into the resistance zone that investors are focusing on to test at 1.18000.
But if the USD gives a surprise to strengthen again, it is very likely to see the price movement again test the resistance level of 1.16000 which was hard to break before.
The support zone of 1.15300-1.15000 still remains the focus level to be reached should the price continue to record lower declines.
