The US dollar continued its decline in the Asian session into the European session last night with momentum compared to last Wednesday when the market focused on the dovish remarks of the Chairman of the Federal Reserve (Fed), Jerome Powell.
However, in the New York session last night the US dollar had returned to its initial recovery to reduce previous losses.
This situation has been driven by the fact that some Fed experts are seen as taking a cautious tone in the view that the rate reduction step is not appropriate to implement this year.
Recommendations for the tight policy that the Fed has in place will continue, the US dollar will have the advantage to strengthen in the market.
While investors were examining the overnight rise in prices on the EUR/USD currency pair charts, declines resumed in the New York session.
The price which initially reached a high of 1.08750 has shown a decline again to around 1.08300 at the end of the session.
Continuing trading in the Asian session this morning (Friday), a slow decline in prices was seen testing the support line of the Moving Average 50 (MA50) on the 1 hour time frame on the EUR/USD chart for investors to assess.
If the price rebounds from this line, a higher rise would be expected to surpass the high level reached overnight.
Next, the price will pass through the support zone at 1.09000 with the expectation that an interesting price reaction will be displayed.
However, if the price is further pressured and falls below the MA50 support, the closest level seen to be tested is 1.08000.
A drop lower than that would be a bearish signal for the price before heading towards the level reached at the beginning of the week, namely 1.07300.
