The US dollar maintained its strength on Wednesday yesterday to trade higher to a 7-week high as analysts assessed several factors that still support the situation.
The current development of the debt ceiling issue in the United States (US) however shows positive progress, making the market more optimistic about the expected agreement.
Rising US 10-year treasury yields are also supporting the current strengthening of the US dollar.
The Euro currency is seen to be increasingly pressured to a lower level due to the strengthening of the US dollar until yesterday.
The final reading for inflation in Europe remained unchanged published in the European session yesterday, leaving no impact on the movement of the Euro.
This can be observed on the price chart of the EUR/USD currency pair.
As expected, the decline has continued after the price managed to break through the lows at the beginning of the week around 1.08500.
Almost touching the concentration level of 1.08000, the price dropped to around 1.08100 to record a new 6-week low.
Price movements that remain below the Moving Average 50 (MA50) barrier on the 1-hour time frame on the EUR/USD chart still indicate a bearish trend.
The expected decline if it continues today (Thursday), will break through 1.08000 before extending further lower decline which shifts the target to 1.07000.
Meanwhile, if the price continues to bounce away from the 1.08000 zone towards the end of this week's trade, the price will first pass the MA50 barrier for an early indication of a change in price direction.
Next, the 1.09000 zone will be tested before the successful increase will continue to reach the previous focus level of 1.10000.
