The USD continues to strengthen its position as the king of currencies as there is still no other catalyst that can make the market shift direction from the rising inflation rate.
The USD continues to dominate the market against the Euro which is seen tied to the European central bank which has previously implemented measures to keep interest rates unchanged.
Investors are likely to look at preliminary readings of spending survey data to gauge consumer current finances that could influence the movement of the USD by the end of the week.
Looking at the price chart of the EUR/USD pair, the price seems to continue to make a decline to once again record the latest low since July 2020 around 1.14360.
The decline has also experienced a fall of over 250 pips from the 6 -week high ever recorded in the 1.17000 resistance zone at the end of October trading.
The price is also seen still maintaining the movement below the Moving Average 50 (MA50) barrier level on the 1 -hour time frame to signal that the bearish trend is still continuing.
The momentum of the diving action is likely to once again make the latest lows which are expected to make a decline to test the support zone at 1.14000.
That is, the support zone is a resistance zone that is the focus of March and June trading in 2020 before being successfully passed in July 2020 to reach the level of 1.23000.
If the price movement returns to give the impression to make a change in the trend, investors may evaluate the price reaction will reach back to the SBR zone (support become resistance) 1.15000.
The SBR zone was also used as the strongest support zone to be penetrated before being able to be torn apart on Wednesday following the publication of encouraging US inflation data.
