The US dollar continued its strengthening more significantly in yesterday’s New York session and is expected to end this week’s trading brilliantly.
Earlier, the US dollar surge was injected by the FOMC meeting which gave clearer indications for the Federal Reserve (Fed) to continue its policy tightening measures.
In the New York session yesterday, the strengthening of the king of the currency continued following the release of the preliminary report of economic growth data of the United States (US) for the last quarter of 2021 with higher figures than expectations.
As a result, most other major currencies are seen to continue to lose trades against the dominant US dollar.
On the main price chart of the EUR/USD pair, the price is seen to have continued the lower decline to pass the important support zone of 1.12000.
The zone is the lowest price -hit zone in 2021. Passing the decline below the zone has recorded its latest 2 -year low.
The latest lows were hit around 1.11300 in the New York session yesterday before the price started to flatten slowly continuing into the Asian session this morning (Friday).
The price movement is still seen to be on a bearish trend after the Moving Average 50 (MA50) barrier on the 1 -hour time frame remains to restrain the price progress to higher levels.
The upside is likely to test the 1.12000 level before resuming the bearish pattern with the latest target level seen at 1.1000.
On the other hand if the price rises above the 1.12000 barrier and also the MA50 barrier, investors will start to be wary for the initial change of the bullish trend again.
