USD Weak, EUR/USD Spike Breaks Key $1.0800 Zone!


After a flat movement at the beginning of the week, the market situation changed on Tuesday yesterday, which saw a more pronounced pattern involving the US dollar currency.

Following the gloomy closing in the last session at the end of last week, the US dollar continued its decline yesterday driven by the 'risk-on' market sentiment factor.

China decided to raise interest rates recently to support the recovery of the struggling real estate market.

Additional stimulus for the world's second largest economy is seen to drive positive global growth hereafter.

The US dollar as a safe-haven currency is affected by massive selling by market players at the moment.

On the chart of the EUR/USD currency pair, the price has shown a daily increase of around 80 pips yesterday following a flat movement the previous day.

The surge is also seen to have penetrated the SBR (support become resistance) zone of 1.08000 which had been a resistance in the previous week's trading.

Recent highs were reached around 1.08380 before prices retreated slightly towards the end of the New York session.

Slow price movement hovering above the 1.08000 zone continued during the Asian session this morning (Wednesday).

A further increase in price will be expected to reach the concentration zone at the height of 1.09000.

The zone became the focus of testing in early trading last February but has not yet been successfully penetrated.

Meanwhile, for the expectation if the price drop happens anyway, a drop below the 1.08000 level will give an early signal for a bearish trend change.

A further drop in price will return to last week's support level at 1.07000.

Investors, however, will be cautious and await the publication of the minutes of the FOMC meeting early Thursday morning to determine the direction of the price movement more clearly.