Pull 'Handbreak'! EUR/USD Couldn't Fall Below $1.0700


The US dollar on Tuesday's trading yesterday was seen not continuing to strengthen as at the beginning of last week.

The situation is slightly off compared to the forecast of analysts who expect the US dollar to continue its strengthening.

However, this is seen as a price correction for the US dollar after a significant strengthening was shown following the reaction to the United States (US) NFP employment report published at the end of last week.

Looking at the price movement on the chart of the EUR/USD currency pair, the bearish pattern at the beginning of the week did not continue yesterday.

The price is flat above the 1.07200 level which is the price support level for now.

After a decline in the European session towards that level, a rebound was displayed in the price in the New York session up to the level of 1.07500 at the end of the session.

Continuing trading in the Asian session this Wednesday morning, the price still continues to rise slowly, but it is seen that it has started to move above the Moving Average 50 (MA50) line on the 1-hour time frame on the EUR/USD chart.

If the price continues to rise after this, the SBR (support become resistance) zone at 1.08000 will be the focus to be tested.

The price reaction around that will be observed and if it breaks higher, it will be a bullish signal for a higher price increase towards the target at 1.09000 before.

On the other hand, if the price turns back to make a decline to continue the previous bearish movement, the price is expected to go to the 1.07000 support zone.

Even lower declines can be expected if the US dollar remains strong and pushes prices to further record new lows this week.