Despite the surge in the value of the Pound after the effects of the intervention of the central bank of England (BOE) yesterday, the Euro currency also experienced a positive effect to trade higher in the New York session.
Also supporting the jump in the European currency was the hawkish tone delivered by the President and members of the European central bank (ECB) who signaled that interest rate hikes would be implemented for the next several meetings, and some supported an increase of 75 basis points at this October meeting. .
While the US dollar also slightly relaxed its strengthening momentum towards the end of September, the Euro took advantage of the space to surge and show the effect of a change in direction on the main price chart.
If examined on the chart of the EUR/USD currency pair, the price hovering in the support zone of 0.95500, which is the lowest price zone since trading in 2002, then displayed a jump of around 200 pips to the high level of 0.97500.
Crossing the Moving Average 50 (MA50) barrier on the 1-hour time frame on the chart has triggered an indication for a change in the price bullish trend.
There is a slow bearish pattern in trading that continues in the Asian session this morning (Thursday), but the price may have the potential to extend the increase if it manages to stay above the 0.97000 level in addition to the US dollar depreciation factor still continuing.
The target for a higher increase is to go to the 0.98000 level again with the expectation that there will be a price reaction in that zone.
However, if the price increase shown yesterday is only temporary, the price decline can occur again below the MA50 support level.
Next, the support zone at 0.95500 will once again be tested and if the price continues to decline lower, the latest 20-year low will be recorded again.
