The movement of the US dollar was mixed on Thursday trading yesterday after the results of the FOMC meeting were published which saw the Federal Reserve (Fed) meet the forecast to raise interest rates to 2.50%.
The US dollar moved weakly in the Asian session yesterday, managed to strengthen in the European session but fell again in the New York session following the release of the United States (US) economic growth data for the second quarter which signaled more clearly towards recession after contraction for two consecutive quarters .
However, US President Joe Biden and Fed Chairman Jerome Powell as well as important individuals in the economy are still calm in their view that the US is not yet in a recession.
Looking at the price movement on the chart of the EUR/USD currency pair, the price is still moving in the horizontal zone last week with a jump after the FOMC yesterday failed to maintain the momentum of continued increases in the following sessions.
The price that surged from the support level of 1.01000 reached a height of around 1.02300 before the price decline was exhibited again in the European session yesterday up to the level of 1.01200.
However, the US dollar that weakened in the New York session bounced back and closed trading around the 1.01900 level at the end of the session.
Giving an early signal for a bearish move after the price moved back above the Moving Average 50 (MA50) support level on the 1-hour time frame on the EUR/USD chart, investors however remain alert for volatile price movements at the end of the week.
The Euro currency is also seen to fail to show a positive performance following the development of the energy crisis in Europe even though the European central bank (ECB) has acted to raise interest rates recently.
For the expectation of a price increase on the EUR/USD chart, the resistance zone at 1.024000 to 1.03000 will be the target to be tested before a higher rise beyond that zone will give a clearer bullish signal.
Further price increases will target up to the resistance level at 1.04000 to record the latest 4-week high.
Meanwhile, if the price plummets, the price will drop below the 1.01600 level and pass the MA50 support to indicate a change in the bearish trend before testing the 1.0100 support level which is in the RBS (resistance become support) zone.
Passing the zone will push the price to fall further with the expectation of reaching the 1.0000 support zone.
