The mixed market movements last week and made the US dollar move erratically throughout the week, investors had to watch the flat price movement on the chart of the EUR/USD currency pair.
However, the scenario was different in the continuing trade earlier this week when the price managed to break out of the horizontal range.
The price finally surged past the important 1.1000 level to overcome last week's highs and is expected to resume the bullish pattern exhibited earlier.
This is driven by the re-depreciation of the US dollar in the market such as the views expressed by analysts regarding the monetary policy of the Federal Reserve (Fed) which will be further slowed down.
The Fed is expected to raise interest rates by 25 basis points at its early May meeting before ending rate hikes to monitor the impact on the economy.
Ending the trading of the New York session, the price on the EUR/USD chart managed to extend the increase until almost reaching the level of 1.10500.
The price increase is seen to challenge the height reached in the previous week around 1.10700.
If an energetic surge is successfully displayed, overcoming the high zone will record the latest high level with the next target price to go to 1.12000.
However, be alert if the price plunges again below the 1.1000 level which will be a signal for the beginning of a bearish price movement.
Expectations for the price drop that occurred is to test the support zone last week which was around 1.0900.
