Just wanting to start a consolidation move, the USD currency returned to turbulence and moved weakly at the end of last week’s trading to drive the EUR/USD price back to a continuous surge earlier this week.
Various sentiments have shaken the market, including the news that the Chairman of the Federal Reserve (Fed) Jerome Powell began to speak out with the ‘tapering’ measures that want to be implemented.
In addition, investors are also waiting for the release of US Gross Domestic Product (US) data to be published on Thursday which is expected to affect the movement of the USD.
Looking at the price chart of the EUR/USD pair, the price seems to have displayed a surge at the beginning of the European session and the New York session (Friday) before declining again at the end of the session.
The price reaction is seen to continue trading above the RBS (resistance become support) zone of 1.16000 and remains moving at the Moving Average resistance level of 50 (MA50) if observed on the 1 hour time frame.
Entering the Asian session at the beginning of trading this week (Monday), the price movement remained slow and volatile but the price trend is still presenting a bullish signal.
If the price is able to continue the more aggressive uptrend it will likely see an attempt to once again test the highs around 1.16700 reached last week.
If the highest level is successfully broken, the SBR (support become resistance) zone of 1.17000 is still the focus of investors to be tested after the price started to fall at that level in previous trades.
On the other hand if the price movement on the EUR/USD chart continues to decline and passes the resistance level of 1.6000, the price is expected to be able to hit the 2021 low again at 1.15300.
The downtrend will also indirectly show the price giving an early signal to make a trend change and is likely to create the latest lows.
