US Dollar Still 'Weak', EUR/USD Continues to Rise for Second Day


 The market's concerns which are assessed to have subsided slightly with several news reports emerging regarding the banking crisis are seen to reduce the appeal of safe-haven trades including the US dollar currency.

The US dollar showed a second day of decline yesterday with no change in the outlook for monetary policy by the Federal Reserve (Fed) which is expected to end the tightening phase of the crisis that hit the market.

The depreciation of the US dollar is seen periodically, not too aggressively saved by the release of the United States (US) consumer confidence data for the March survey in yesterday's New York session with positive figures rising.

This situation has had an increasing effect on the anti-USD currency, the Euro, with the expectation that interest rate increases will continue by the European Central Bank (ECB).

Euro traders will be focusing on European inflation readings at the end of the week with a focus on early readings for German inflation.

Examining the price chart of the EUR/USD currency pair, the price which has continued to rise at the beginning of the week, passed the level of 1.08000 at the beginning of the Asian session yesterday and extended the rising pattern until the end of the New York session.

The latest level reached is around 1.08470 with a bullish price signal moving above the Moving Average 50 (MA50) support level on the 1-hour time frame on the EUR/USD chart.

The rise is expected to continue to overcome last week's high at 1.09300 before making a recent 8-week high towards the 1.1000 target.

However, if the bullish pattern fails to be maintained, the price that changes direction to make a decline will be observed for traders to see the indication of a change in trend again.

A break below the 1.08000 level again and also breaking through the MA50 support will be an early signal of the beginning of a bearish pattern that will lead to the zone around 1.07000.

If the lower decline continues, the price that crosses the 1.07000 zone can reach the 1.06000 level.