The change in the direction of prices in the financial market did not give any surprise to investors as this situation has been expected until next week with corporate income reports will continue to be evaluated.
Yesterday's trading on Wednesday saw the US dollar return to its strengthening track as analysts assessed the tendency of sentiment to shift in a riskier direction.
The focus is also directed at the statement by the President of the Federal Reserve (Fed) St. Louis, James Bullard who sees a potential interest rate hike of 75 basis points to continue at the November and December meetings.
Meanwhile, the President of the Chicago Fed, Charles Evans was seen expressing concern over the impact of the aggressive policy tightening on the economy which could continue to add suffering to businesses.
However, policy tightening needs to continue as the risk of high inflation is still a major concern after the UK inflation data published yesterday also saw high levels.
On the price chart of the EUR/USD currency pair, the direction of the price increase at the beginning of the week started to change yesterday when a downward pattern was displayed from the Asian session until the end of the New York session.
After failing to break above the 0.98700 high, the price has dropped back below the 0.98000 concentration level before settling around 0.97600 until trading resumes in the Asian session this morning (Thursday).
A bearish signal is again assessed by investors when the price moves back below the Moving Average 50 (MA50) barrier level on the 1-hour time frame on the EUR/USD chart.
If the downward trend continues, the 0.97000 zone last week will be the focus to be tested again and it is expected that there will be a price reaction around that area.
A lower decline is seen to lead to the focus support zone at 0.95500 which is a 20-year record low price.
However, if the surge occurs again, surpassing the 0.98000 level and the MA50 barrier, it is likely that the resistance zone at 0.99000 will become a price target again.
Next, the 1.0000 parity zone will be the focus for price increases that continue the bullish trend movement.
