The US dollar is seen as still exhibiting dominance even though the previously significant strengthening momentum has begun to slow down.
Compared to the market movement at the beginning of the week which was still lively, trading on Tuesday yesterday was more flat with cautious statements by several Federal Reserve (Fed) Presidents due to overly aggressive policy tightening.
The US dollar returned to move better in the New York session yesterday after gloomy movements in the previous sessions after being supported by the release of positive United States (US) consumer confidence data.
Meanwhile, the Euro currency remains showing a dismal performance with the energy crisis in Europe that is getting longer and longer. It has been reported that there are several leaks at the Nord Stream pipeline which is disrupting the supply of gas from Russia to Europe.
Examining the price movement on the chart of the EUR/USD currency pair, the price moved in a range of 100 pips after the drastic price shock earlier in the week.
The price increase in the Asian session yesterday was blocked by the barrier level of the Moving Average 50 (MA50) on the 1-hour time frame on the EUR/USD chart before the price decreased again, indicating that the price movement remains in a bearish trend.
The price eased back to the Asian session this morning (Wednesday), retesting the latest support level at 0.95500 which was hit earlier in the week.
A continued decline beyond that level will record the latest 20-year low with the next target reaching up to around 0.94000.
However if the price makes a surge past the MA50 barrier and overcomes yesterday's high level around 0.96600, the resistance at 0.97000 is expected to be tested by the price.
A higher move above that resistance would signal more bullishness for the price towards the previous concentration level at 0.98000.
