The current situation in financial markets remained unchanged dominated by market risky sentiment following concerns over a lockdown in China as well as escalating military and economic tensions between Russia and NATO that remain lingering.
The US dollar continued to dominate the market by extending its strength in Tuesday’s trading yesterday as expected with the prospect of an aggressive interest rate hike at next week’s FOMC meeting.
Thus, the strengthening of the US dollar continued to negate the rise of other major currencies in the market and even continued to depreciate since the beginning of the week.
As shown on the chart of the EUR/USD currency pair yesterday, the price continued its decline after breaking the support level of 1.07000 and reaching the level around 1.06400 at the end of the New York session.
This is the latest 2 -year low recorded by the price after the last time the price hit around the zone in March 2020 trading.
If the decline continues, the price will record the latest low since April 2017 with the expected level to be tested is at 1.06000.
And for the lower target, the 1.04000 zone will be the main focus which is the price support zone at the end of 2016 trading.
As for the expected price increase, the initial resistance that will be tested is at 1.07000 first.
A rise that passes the Moving Average 50 (MA50) barrier in the 1 -hour time frame will be an early signal for a change in the bullish trend before the rise continues towards the SBR (support become resistance) zone of 1.08000.
