As expected by market analysts, the US dollar returned to show strength again after a temporary decline following the US inflation data published this week.
The focus is on the outcome of yesterday's European central bank (ECB) policy meeting with interest rates seen to remain unchanged.
Still, analysts rated the statement delivered by the ECB rather dovish, which also worries about the impact of the Russian conflict on the European economy.
Rising energy and commodity prices affected demand rates and also slowed production at factories, which in turn led to higher inflation.
The Euro experienced a sharp depreciation following the meeting which saw prices fall to a recent 2 -year low against the US dollar.
On the price chart of the EUR/USD pair, the price hovered in the 1.09000 zone after the rise displayed last Wednesday, has plunged back yesterday around 150 pips.
The decline was also seen slightly above the 1.08000 support level hitting the latest low around 1.07600 before rising again above the 1.08000 level at the end of the New York session.
After a significant drop in the price and a decline below the resistance level of the Moving Average 50 (MA50) on the 1 -hour time frame on the EUR/USD chart, further strengthened the indicators for the movement of the bearish trend.
If the decline continues today, the price is seen heading to the latest support level at around 1.07000 which had previously supported the price in March 2020 trading, for the price to continue to record its latest 2 -year low.
Yet if the situation changes and the price starts to make a rise again, the resistance that needs to be tested is still at the 1.0900 zone at yesterday’s hovering price level.
For a higher rise will target to the high level of 1.1000 which was the focus of the price before.
