Price movements on the main charts are seen as gloomy as the United States (US) market was closed on Thursday yesterday in conjunction with the Thanksgiving Day celebration.
The US dollar was more flat and did not continue further declines after closely watched minutes of the FOMC meeting gave the impression that the Federal Reserve (Fed) will begin to slow its previously aggressive policy tightening.
However, investors remain cautiously monitoring the market sentiment which is at risk with the development of Covid-19 in China expecting movement restrictions to be implemented again in Beijing and several other major cities.
In addition, the tension between Russia and the European Union (EU) is also a concern following the announcement of the 9th package of sanctions against Moscow by the President of the European Commission, Ursula von der Leyen.
The Euro currency was also traded gloomily after the minutes of the European central bank (ECB) meeting published yesterday showed that policymakers saw interest rate increases only needing to be increased to 50 basis points, compared to 75 previously.
This situation also made it difficult for the Euro to stand out more when the US dollar showed a dismal performance at the end of the week.
The chart of the EUR/USD currency pair on Thursday yesterday saw the rise continue to the highs around 1.04500, but then flattened back above the 1.04000 level until the end of the New York session.
Although the price movement above the Moving Average 50 (MA50) support level on the 1-hour time frame on the EUR/USD chart indicates a bullish trend, analysts do not rule out that a change in direction can happen at any time.
If the price manages to continue its gains at the close of trading this week, the rise from the 1.04000 level is likely to move towards the resistance zone at 1.05000 to challenge the highs reached last week.
On the other hand, if the price drops below the 1.04000 level and breaks through the MA50 support, an early signal for a bearish trend change will be observed.
Further decline if continued will lead to this week's concentration zone at 1.03000 to 1.024000 which is the price support at the beginning of the week.
