Déjà Vu! EUR/USD Stuck Again At $1.1000!


 The US dollar was seen closing the trade at the end of last week showing a recovery.

Previously, the US dollar had experienced a significant decline when the focus was on the FOMC meeting with a dovish speech delivered by Federal Reserve (Fed) Chairman Jerome Powell regarding monetary policy.

However, it made the US dollar change direction last Friday when the statement delivered by Fed President John William said that the central bank is not talking about interest rate cuts at this time.

The US dollar was strong against several major currencies including the Euro in addition to market movements also influenced by the release of manufacturing and services PMI data at the end of last week.

The reading of data for Europe recorded a declining figure that made the Euro reduce its previous gains, while the same data for the United States (US) was mixed.

Observing the price movement on the chart of the EUR/USD currency pair, the 1.1000 level becomes a critical zone for the price with the displayed reaction.

Once again, the level became a resistance that failed to break through after being tested, like the situation that happened in the trade at the end of November.

After the surge on Thursday reached the height of 1.10000, the price plunged again on Friday around 100 pips to the 1.09000 zone again.

Giving an early warning of a bearish move when the price starts to move below the Moving Average 50 (MA50) barrier level on the EUR/USD chart makes investors alert for the risk of another price drop this week.

If the decline continues, the price is seen to return to the 1.08000 level and is expected to react around that.

A break lower could push the price to the next target level at 1.07000 or the low level reached in the previous week around 1.07300.

Meanwhile, if the price manages to resume last week's upward pattern, the 1.10000 resistance will definitely be the focus to be tested again.

A move past it will record a recent 4-week high with the latest target to reach expected at 1.10600 or higher is at 1.11000.