EUR/USD Was High Before Plunging Over 100 Pips!


 The US dollar traded mixed on Tuesday yesterday seeing significant range fluctuations on different sessions.

In the European session, the depreciation of the US dollar continued to continue the previous price movement pattern, but the situation changed in the next session when it strengthened again supported by published data.

The United States (US) job cost index data and consumer confidence data both recorded good readings.

Even so, investors will be more alert ahead of important data tonight before the focus will be directed to the FOMC meeting early Thursday morning.

Examining the price movement chart of the EUR/USD currency pair, a surge was observed in the European session from the 1.06000 zone to reach a height of 1.06700.

However, in the European session, the price was seen to make a dive again, penetrating 1.06000 until it reached around 1.05600 in the New York session.

The slow price movement at the end of the session continues the opening of the Asian session this morning (Wednesday).

A bearish signal is observed when the price starts to break below the Moving Average 50 (MA50) barrier level on the 1-hour time frame on the EUR/USD chart.

If the decline continues, the price will go to the support zone at 1.05000 and if it breaks through, the next focus zone is around 1.04500 to be tested.

If the price makes an increase anyway, passing the 1.06000 zone will expect the price to retest the high level reached yesterday.

Next, the resistance zone at 1.07000 will be the target to be broken after last week's price increase failed to challenge the zone.