The situation began to change on Tuesday's trade yesterday affected by market sentiment which was driven by concerns over the banking sector hitting again.
Shares of First Republic Bank reportedly fell nearly 50% on Tuesday while UBS reported a decline of up to 52% in its quarterly earnings.
Thus, safe-haven currencies including the US dollar gain an advantage to strengthen in the market and pressure other major currencies.
It can be seen that the price movement on the chart of the EUR/USD currency pair has changed direction from the original expectation of analysts who initially saw the tendency of the price to continue rising higher.
After hovering at the height of the 1.10600 zone at the beginning of yesterday's Asian session, a decline began to appear in the European and New York sessions until it re-penetrated the important level of 1.10000.
The daily decline of almost 100 pips reached around 1.09700 before the price slowed and flattened to continue at the opening of the Asian session this morning (Wednesday).
A bearish price signal was assessed after the fall back below the 1.10000 level also crossed the Moving Average 50 (MA50) level on the 1-hour time frame on the EUR/USD chart which calculates the average probability of price movement.
If the US dollar manages to remain strong, the price will be pushed lower towards the closest support zone at 1.09000 which has supported the price in the past week.
A lower move past it would expect a lower target for the decline to reach 1.08000.
However, if the US dollar weakens again like at the beginning of the week, investors are likely to see the price bounce back above the 1.1000 level.
With a more bullish signal being assessed, the price is likely to resume the rise testing the 1.10600 resistance before breaking it higher.
The next target for the price is seen to be at a height of around 1.12000.
