Risky market sentiment gave the US dollar an advantage to strengthen and was also supported by the release of the positive United States (US) NFP employment data report.
But it can be seen that the movement of the US dollar started to be gloomy in the European session yesterday, which shrank again, making investors watch out for a change in the direction of price movements in the market.
The US dollar however returned to a strengthening track at the end of the New York session.
Investors are expected to be more cautious about trading the US dollar ahead of important US economic data including inflation data, retail sales and also FOMC meeting minutes.
The price movement on the chart of the EUR/USD currency pair was seen to decrease in the Asian session yesterday to a level around 0.96700, but there was a price rebound up to the height of 0.97700.
Closing the New York session, the price dropped back to the 0.97000 concentration zone.
Continuing trading at the beginning of the Asian session this Wednesday morning, the price moved back below the Moving Average 50 (MA50) barrier level on the 1-hour time frame on the EUR/USD chart to signal the continuation of the bearish trend.
With the tendency of the price to continue the downward pattern, the price that plunges from the 0.97000 zone will record a recent 2-week low.
The target for a further drop in prices is seen to be heading towards the 0.95500 zone which was reached at the end of September, becoming the lowest price record for a period of 20 years.
But watch out if the US dollar starts to show signs of weakening again in the market and makes the price bounce again.
A bounce from the 0.97000 zone past the MA50 barrier will target the initial resistance of 0.98000 before the rally continues to around 0.99000.
Next the 1.0000 parity zone will be the focus to be tested again if the price increase continues.
