The US dollar showed renewed strength in trading towards the end of yesterday's New York session after the king of currencies moved lower in the European session.
Changes in market sentiment during the current corporate earnings season in focus will expect volatile movements into next week.
However, the focus remains on the hawkish statements delivered by members of the Federal Reserve (Fed) on monetary policy which continue to reassure the market that aggressive policy tightening will continue until the end of 2022.
Also supporting the strengthening of the US dollar in the New York session yesterday when the publication of data on unemployment benefit claims in the United States (US) which showed a declining number gave a positive signal to the development of the US economy.
On the chart of the EUR/USD currency pair, a bullish pattern is displayed as the Euro currency also receives positive momentum from the strengthening of the Pound as the market reacts to the news of Liz Truss's resignation as UK Prime Minister.
The price made a rally past the 0.98000 level reaching highs around 0.98400 before seeing a decline again towards the end of the New York session.
Closing the New York trading session at around 0.97800, the price moved back below the Moving Average 50 (MA50) barrier level on the 1-hour time frame on the EUR/USD chart, indicating a continuation of the bearish movement.
If the decline continues, the focus will be on the 0.97000 zone which was an important zone during last week's trade.
Beyond that support zone, the price can be expected to drop to around 0.95500 again.
On the other hand, if the price shows a bullish pattern in the final trading sessions of this week, the bullish target will be at the 0.99000 resistance zone after crossing the 0.98000 level first.
Next, for the bullish movement of the price, the parity zone of 1.0000 will be reached again after the last time the price touched it in the early trading last October.
