The US dollar still maintains its gloomy movement as before with the expectation that the Federal Reserve (Fed) will slow down the tightening of monetary policy.
Also received a significant impact on the Euro currency when the European Central Bank (ECB) is reported to be considering to slow down policy tightening.
ECB President Christine Largade is seen to opt for a 50 basis point increase in interest rates at the February meeting, before reducing to a 25 basis point increase starting in March.
As a result, the Euro depreciated more significantly against the US dollar in Tuesday's trade yesterday to become the worst performing currency.
Observing the movements on the chart of the EUR/USD currency pair, the price initially hovered at the height of 1.08700 and then plunged almost 100 pips below the 1.08000 level.
Because the 1.08000 level was previously a support zone for the price, it can be seen that the plunging price started to level off and slowly move in that zone until the end of the New York session.
The slow movement of prices in the vicinity continued at the opening of the Asian session today (Wednesday), but investors began to assess bearish signals for prices after being below the Moving Average 50 (MA50) barrier level on the 1-hour timeframe on the EUR/USD chart.
If the Euro weakens further towards the end of the week, the decline is likely to continue to the previous concentration zone at 1.07000.
Showing the movement of the bearish trend more clearly will see the price continue to decline towards around 1.06000.
On the other hand, if the price bounces back from the 1.08000 zone, the weekly high reached is likely to be overcome before the price tests the 1.09000 resistance zone.
Continuing the climb higher, the target is at 1.10000 for the price to record the latest 9-month high.
