The US dollar started the week on a strong note as strengthening was shown at the start of the Asian session, continuing the momentum of last week's late trade.
For the period ahead, the US dollar is expected to show positive movement after the Federal Reserve (Fed) met expectations to continue aggressive interest rate hikes for the third time in a row.
But the currency king began to slow down his dominance as trading resumed in the European and New York sessions.
The focus in the New York session yesterday was directed to the speech of the President of the European Central Bank (ECB) Christine Lagarde, but did not have a significant impact on the Euro currency.
The euro, however, managed to withstand the pressure of the US dollar in the previous session following the signal that interest rate hikes will continue by the ECB.
On the price chart of the EUR/USD currency pair, the price drop in the Asian session yesterday was extended to the lowest level in the latest 20 years.
A decline of 150 pips has reached around 0.95500 before a price rebound at the same rate to return to the 0.97000 resistance level in the European session.
The price movement in the following session was more flat and did not continue to rise higher before closing the end of the New York session around 0.96000.
The price that is still moving below the barrier level of the Moving Average 50 (MA50) on the 1-hour time frame on the EUR/USD chart still shows bearish signals for the price this week.
The expected decline will test the latest support level at 0.95500 which was hit yesterday.
A further decline beyond that level would mark the latest low since June 2002.
But be alert if the price makes a jump past the MA50 barrier and the 0.97000 resistance which will be an early indication of a change in the price trend.
The continued increase will return to the previous price concentration zones such as the 0.98000 level or even higher at the 1.0000 parity zone.
