The US dollar continued its gloomy run entering the third day of trading this week, maintaining the bearish pattern from the end of last week again.
The situation is seen to continue to open up space for most other major currencies in the market to strengthen, although market sentiment is considered to be still risky.
The Euro currency significantly showed a surge in value in the European session yesterday following the report that the European Central Bank (ECB) will raise interest rates to 50 basis points, higher than the previous expectation of 25 basis points.
Thus, the Euro recorded its biggest daily gain yesterday for a 2-month trading period while investors now await the outcome of the ECB's policy meeting tomorrow (Thursday).
The price movement on the EUR/USD currency pair chart yesterday recorded a daily increase of around 150 pips to continue the bullish pattern.
The price which has reached a new 20-year low last week at 0.99530 is seen to have successfully rebounded up to 300 pips as of yesterday, after successfully rebounding from the 1.0000 zone.
A sustained price movement above the Moving Average 50 (MA50) support level on the 1-hour timeframe on the EUR/USD chart for a bullish signal sparks expectations for prices to continue moving higher today.
For the expectation of an increase, overcoming the high level reached yesterday will further test the level of 1.03000 before the price that continues to rise will aim for the concentration zone of 1.04000.
On the other hand, if the price drops again, the price support level is seen to be around 1.01600 before the lower price will test the 1.01000 zone.
A further drop in price after a bearish trend change signal will push the price back to the 1.0000 support zone.
