The strengthening of the USD currency deck due to the aspect taken against the hawkish statement by the Federal Reserve (Fed) seems to continue to drive the king’s throne the currency remained intact in early week trading.
But the throne is seen a bit shaken by the positive reading on the publication of the German Economy Survey ZEW data which has already stimulated the Euro to strengthen again.
Investors are also wary of turning the next major focus to the publication of US consumer price (CPI) data after the previously slightly disappointing release of NFP data.
True to the expectations of analysts after the price on the chart of the EUR/USD currency pair only made a reversal in the trendline support which then continued to give strong action in the European session on Tuesday.
The ferocity in translating the plunge seemed to almost want to retest the 1.12000 support zone before returning to climb in yesterday’s New York session until the end of the session.
The surge completely continued into today's trading session (Wednesday) with price movements seen once again testing the Moving Average 50 (MA50) resistance levels and trendline resistance.
The factor will also be evaluated to anticipate the next target which also looks like it wants to break the resistance trendline to re -test the SBR zone (support become resistance) 1.13000.
In doing so, investors will likely see a price reaction on the SBR zone in question whether the zone is successfully overcome or not for an early signal to a clearer trend change.
But if the current surge is not able to continue, it will indirectly push investors to see the price hit back to the support zone of 1.12000.
A lower decline will boost investors' targets to see the price move to try the 2021 lows around 1.11900 before a new low is created.
