The US dollar failed to perform well towards the weekend after a depreciation reaction occurred during the FOMC meeting.
Continuing until yesterday's New York session trading, the US dollar remained weak in the market, but analysts expect the king of the currency to strengthen again at any time.
The depreciating situation of the US dollar has given most other major currencies in the market to rise including the Euro even as the European currency was affected by a surprise meeting held by the European central bank (ECB) this week.
On the price chart of the EUR/USD pair, the price has made a rebound yesterday after the horizontal movement of the price at the support level of 1.04000.
The bulls have reached a high of 1.06000 with a daily jump of around 200 pips recorded.
The price is seen to have broken the initial resistance at 1.05000 after passing the Moving Average 50 (MA50) barrier on the 1 hour time frame on the EUR/USD chart, has signaled for a change in the price trend to take place.
However, after reaching the high level of 1.06000 in the New York session, the price started moving slowly again retreating from that level at the end of the session.
If the bullish pattern is maintained for this week's closing trade, the rise above the 1.06000 level is expected to reach the 1.07000 level.
Continuing higher gains will push the price to head back to the 1.08000 focus resistance zone tested in the previous few weeks.
On the other hand, if the surge fails to be sustained and the price makes another decline at the end of this week, a decline below the 1.05000 level will expect the price to return to the 1.04000 support.
A lower drop below that level will record the latest lows again this week, and could likely hit up to the 1.03000 level for a 20 -year price record low.
