EUR/USD Failed to Break through $1.08000 Resistance, Or Not Yet?


The decline of the US dollar in the past week did not continue in the opening trade earlier this week.

On the other hand, the movement of the US dollar was flat as the market reassessed the results of the FOMC meeting and statements by Federal Reserve (Fed) officials.

Statements by Richmond Fed President Thomas Barkin on Monday supported Fed Chairman Jerome Powell's tone of keeping policy tight.

Barkin sees no indication that inflation is on track to meet the central bank's target.

If you look at the price movement on the chart of the EUR/USD currency pair, the price tested resistance at the 1.08000 level at the end of last week after the surge that occurred.

But at the beginning of the week yesterday, the price failed to touch that level with a horizontal price movement above 1.07600.

The price hovered around that until continued trading in the Asian session this morning (Tuesday), but investors still saw bullish signals for the price which remained above the Moving Average 50 (MA50) support level on the 1-hour time frame on the EUR/USD chart.

If a surge occurs today, the 1.08000 resistance will be tested again and it is likely that the price will break through it.

A further move higher will mark the latest 4-week high with a target around 1.09000.

If the opposite situation occurs, the price decline is expected to re-approach the 1.07000 concentration level.

A lower drop after the bearish trend change signals the price will expect a target at the 1.06000 support zone to target.