The US dollar is seen to be still showing strengthening, but the momentum slowed somewhat on Tuesday yesterday due to several factors in the market that made investors cautious in making decisions.
Market sentiment remains at risk as the effects of mass protests in China since last weekend have fueled investor concern.
The Chinese government, which acted to announce the booster vaccination period for the elderly, was accelerated yesterday.
Investors are now looking forward to the release of some important economic data from the United States (US) such as private sector employment data and Gross Domestic Product (GDP) before the focus will be directed to the speech by Federal Reserve (Fed) President Jerome Powell early Thursday morning.
If you look at the price movement on the chart of the EUR/USD currency pair yesterday, the price initially rose slightly in the Asian session, but did not manage to cross the 1.04000 barrier.
The decline started to occur in the New York session as expected, but the momentum of the decline displayed was slower than the previous day.
Analysts still see the US dollar's tendency to strengthen and push prices lower, but the factor of caution ahead of the US NFP employment data report at the end of the week slightly eased the US dollar's progress.
Still moving in a bearish trend, the price is blocked by the Moving Average 50 (MA50) barrier level on the 1-hour time frame of movement on the EUR/USD chart when the increase is made before bouncing back down.
The price drop is expected to continue to enter the concentration zone of last week which is between 1.03000 to 1.024000.
If the price continues to drop lower beyond the zone, the next price target is seen at the RBS (resistance become support) zone of 1.01000.
However, if the price reverses its direction towards the top again, the 1.04000 level will be the initial resistance to be tested before the price passing the MA50 will give an indication of the trend change that is about to happen.
The extended rise in price will retest the 1.05000 resistance zone when the price reached earlier in the week which recorded a 5-month high.
