The US dollar maintained its strengthening momentum in trading on Tuesday after a sustained positive reaction following an indication of an interest rate hike of up to 50 basis points by Federal Reserve (Fed) Chairman Jerome Powell for next week's May meeting.
In addition, the US dollar was also injected by market sentiment which remained risky following concerns over a lockdown in China due to the re-emergence of Covid-19 in the country.
President Emmanuel Macron who remained the winner of the French presidential election was seen as unsuccessful in supporting the re -strengthening of the Euro currency which was under pressure by the strengthening US dollar.
On the price chart of the EUR/USD pair, the price continued its lower decline at the market opening earlier this week continuing the falling price pattern displayed at the end of last week.
As analysts expected, the price has slipped to the latest support level at 1.07000 thus recording the latest 2 -year low.
The last time the price tested the zone was in March 2020 trading where the price was successfully boosted again until the end of 2020.
Prices that remain moving below the Moving Average 50 (MA50) barrier level on the 1 -hour time frame still signal for bearish movement for the price on the EUR/USD chart.
In fact, the price is expected to decline lower beyond the 1.07000 support if there is no change in the current market situation.
The continued lower is likely to target the level around 1.06000 to continue to record the latest lows.
However, if the price manages to make a rebound from the support zone 1.07000, the initial price increase is seen to test the SBR zone (support become resistance) around 1.07700-1.0800.
A continued rise and also past the MA50 barrier will signal for a change in the bullish trend for a higher rise.
