The market seemed to receive a surprise when the USD currency traded weak again in early February trading and at the same time slammed its throne as the king of major currencies.
The weakness is likely due to profit taking activity at the close of January trading as well as the gloomy ADP NFP data of the United States (US) in the New York session yesterday.
But the matter did not frighten most investors at all after the Federal Reserve (Fed) remained setting its policy to implement tapering and interest rate hikes more immediately.
Looking at the price movement on the EUR/USD chart, the price seems to continue to jump around 200 pips from the most recent 2 -year low of 1.11200 that it touched last week.
The surge was seen as a result of the price continuing to break the Moving Average 50 (MA50) in early trading this week before continuing to climb and giving an early picture for a trend change signal.
However, the price spike seems to be stuck in the SBR (support become resistance) zone of 1.13000, which is the zone that is often the main focus to determine the true direction.
One more thing, the resistance zone around 1.14000 is likely to be the focus as there are expectations that the European Central Bank (ECB) will dismiss its dovish statement at a policy meeting tonight.
Such a thing will inevitably spur the price movement which it will probably be able to keep climbing to the top of the height in the 12 months reached at 1.15000.
On the other hand, if the bearish trend is presented again, then the support zone of 1.12000 will probably be the closest target that will be tracked first before continuing to decline.
The lower decline is expected to tend to once again head to a 2 -year low of around 1.11200 ahead of the US NFP data release report to be released this Friday.
