The European currency managed to show a strengthening against the US dollar in trading on Thursday with a focus on the results of the European and England central bank meetings.
The European Central Bank (ECB) has kept interest rates unchanged and confirmed the pandemic emergency buying program (PEPP) will end in March 2022 as previously expected by the market.
The ECB also announced tapering measures for the asset purchase program (APP) to a reduction of € 40 billion in the second quarter and € 30 billion in the third quarter of next year from the current reduction of € 20 billion.
The price movement on the EUR/USD currency pair chart has added a jump of around 80 pips since from yesterday’s Asian session.
This follows a price spike after the results of the FOMC meeting in the previous session and shows the Euro managed to dominate on weekend trading with a rise of around 130 pips in 2 days.
Yet the rise struggled to get past the 1.13500 zone before re -closing the lower New York session trading again.
If the situation continues, a higher rise will be expected to head to the resistance zone at 1.14000 after a few weeks of the price moving below that zone.
Investors however did not rule out forecasts for a price decline with strong fundamental factors supporting the US dollar.
The decline is likely to test the 1.12500 support zone again if the US dollar strengthens again over the weekend.
A lower decline for a reversal of the bearish trend will push the price towards the key support zone of 1.12000 which is the lowest price zone reached for 2021.
