The US dollar in earlier trading this week was seen as yet to give a clear direction of movement after the US NFP employment data report published last weekend was disappointing.
While investors await the US inflation data report on Wednesday, the US dollar is seen making ups and downs in different market sessions.
Jerome Powell’s speech will be the focus of investors at the Federal Reserve (Fed) Chairman’s re -nomination event before the Senate Banking Committee for guidance on his monetary policy tonight.
Therefore, for now, investors will continue to be alert to changes in price movements, especially for the US dollar.
Examining the price chart of the EUR/USD pair, the price showed a bearish pattern again at the market opening earlier yesterday, not continuing the surge made last Friday following the reaction to the NFP report.
In Monday trading yesterday, the price was seen exhibiting a daily decline of around 70 pips since the Asian session began until continuing into the beginning of the New York session, indicating the US dollar managed to put pressure on the Euro.
However, towards the end of the New York session, the price has bounced back from the daily low around 1.12870 to the level around 1.13250 to close the trade around that level.
The return signals for a bullish pattern when the price starts moving above the Moving Average 50 (MA50) support level on the 1 -hour time frame and resumes the rise at the beginning of the Asian session this morning (Wednesday).
The 1.14000 zone is still the target for the increase which is expected to be continued by the price if the US dollar remains weak.
Only after passing the resistance will the price record its latest high after 8 weeks, possibly towards the level around 1.14500.
On the other hand, if the price plummets with a factor that strengthens the US dollar again, the price support zone is in the zone around 1.12500-1.12400 will return to the focus of the price decline.
The continued decline is still expected to test the main price support zone in 2021 which is around 1.12000.
