The crisis of the collapse of Silicon Valley Bank (SVB) and Signature Bank has invited a panic situation in the market but the United States (US) government is trying to calm it down.
It is said that the crisis occurred as a result of the aggressive interest rate hikes by the central bank before.
Now investors are starting to see expectations that there will be no increase in interest rates by the Federal Reserve (Fed) at the March meeting.
This has had the effect of a significant depreciation of the US dollar which resumed trading at the opening of the beginning of the week.
After last week's US NFP employment data, the focus will be on the release of US inflation data in the New York session tonight.
The Euro currency is also in focus by taking advantage of its value increase on the depreciation of the US dollar, while investors await whether the European Central Bank (ECB) will raise rates by 50 basis points or not.
Examining the price chart of the EUR/USD currency pair at the beginning of the week, the price pattern was quite mixed but the increase to the latest high level was successfully reached around 1.07500 after dropping to 1.06600 before.
Overcoming the high on the surge during the reaction to the NFP report last Friday, the price which also moved above the support level of the Moving Average 50 (MA50) on the 1-hour time frame on the EUR/USD chart still suggests a bullish movement.
A sustained rise is expected to head for the next concentration level at 1.08000 to continue posting a recent 4-week high.
However, if the price declines again, a drop below the 1.07000 level and passing the MA50 support will signal an early trend change.
A further drop in price will continue towards around 1.06000 or the support zone at 1.05000.
