Returning to provoke a different reaction in the market, risky market sentiment was previously seen to be easing with the development of the Russian-Ukrainian geopolitical crisis.
The Russian Defense Minister has reported that Russian troops have begun to withdraw from the border and eased tensions in anticipation of an earlier war.
However, investors are still vigilant in monitoring the development following a warning by US President Joe Biden that there is still a possibility for Russia to invade Ukraine with an unconvincing statement by Russian President Vladimir Putin.
For now, slightly eased tensions have caused the previously strengthening momentum of the US dollar to begin to stagnate.
In fact, the US producer price index (PPI) data published positively during yesterday’s New York session also failed to give a strengthening injection against the US dollar.
Thus, it can be observed that like the price movement on the chart of the EUR/USD currency pair yesterday, the price has rebounded to make a rise again after the price decline occurred since last weekend.
After the decline at the beginning of the week hit the level of 1.12800, the price has displayed a bullish pattern again on Tuesday's trading yesterday and did not continue the previous bearish trend.
Also signals for a reversal of the bullish trend when the price moves past the Moving Average 50 (MA50) barrier level on the 1 -hour time frame on the EUR/USD chart.
The end of the New York session and continuing at the beginning of the Asian session this morning, the price is seen to flatten slowly around the level of 1.13600 with the expectation that a continued rise will test the SBR (support become resistance) zone at 1.14000.
For a higher rise if the US dollar continues to weaken, the price may re-reach the high reached the previous weeks at the resistance zone of 1.14800.
Even so, investors are not pushing for the expectation of a rebound in prices if the focus is on expectations for the Federal Reserve (Fed) to raise interest rates.
The re -strengthening of the US dollar will push the price back towards the RBS (resistance become support) zone of 1.12600 and continue the previous bearish trend.
The lower decline will return to target up to the support zone at 1.11300 which was the focus of trading at the end of January.
