The further strengthening of the US dollar that continued on Tuesday's trade yesterday further dragged the Euro down to new lows.
The situation is also driven by concerns about the tariff issue on the European zone during the transition of the new White House administration headed by Donald Trump.
However, the market's focus at this point will be directed to the release of United States (US) inflation data that will be published in the New York session tonight.
Expectations for inflation figures in October to rise again could provide additional support to the US dollar.
On the chart of the EUR/USD currency pair yesterday, the price has reached the focus support zone expected by analysts which is at 1.06000.
The price drop on display was seen to be slightly above the level recorded last April and at the same time became the latest lowest level since trading in November 2023.
After reaching the 1.06000 zone, the price bounced a little before leveling off around that area until the Asian session this Wednesday morning.
The price movement, however, remains moving in a bearish trend below the Moving Average 50 (MA50) obstacle line on the 1-hour time frame on the EUR/USD chart.
The tendency is for the price to continue falling lower, but it needs to pass the 1.06000 support first.
A further drop in price that continues after this will move the target to the next concentration level around 1.05000.
However, it will signal a trend change if the price starts to make a jump from the 1.06000 zone and crosses the MA50 barrier.
For a higher increase that wants to continue, the resistance at 1.07000 will be tested before continuing the price hike towards 1.08000.
