The global banking crisis is becoming more worrying when the effects of the collapse of giant banks in the United States (US) have previously spread to Europe.
The continuation of the recent collapse of Silicon Valley Bank (SVB), there was a stir yesterday regarding the critical situation of the giant investment bank in Switzerland, namely Credit Suisse.
The panic that broke out has caused the Swiss franc to decline, dragging other European currencies including the Euro and the Pound down.
Meanwhile, the market's risk-off sentiment has again boosted the value of the US dollar as demand for the safe-haven began to increase, as well as for the Japanese Yen.
Thus, a surprise has occurred on the chart of the EUR/USD currency pair which suddenly changed direction and displayed drastic movements.
Somewhat unusually, the daily plunge took place up to 240 pips from the 1.07600 level to reach around 1.05200.
So, the question arises whether the decision of the central bank meeting of the European Central Bank (ECB) today was successful in re-strengthening the Euro currency?
If observed, the price bounced a little at the close of the New York session and continued trading this morning's Asian session slowly around 1.06000.
However, with the pattern that has been displayed, the price is seen to resume its decline towards the support zone at 1.05000.
Next, the decline can be extended to the 1.04000 level and record the latest 15-week low.
However, if the atmosphere begins to calm down again and the price is seen to continue to rise, the barrier at 1.07000 and the barrier level of the Moving Average 50 (MA50) on the 1-hour time frame of the price movement on the EUR/USD chart need to be broken to give a bullish signal again.
Next, the price is expected to resume the previous rising pattern to reach the target of 1.08000.
