The risk-off market sentiment driven by the Russia-Ukraine war issue has made investors wary of any changes in the movement of major currencies.
As expected, the US dollar on Wednesday began to show its strengthening pattern after moving weakly since the opening of trading earlier in the week.
Although the strengthening exhibited was not very significant, market analysts see potential for the safe-haven currency due to the risk-off market sentiment.
Examining the price movement on the chart of the major currency pair EUR/USD, a bearish pattern was displayed throughout trading yesterday Wednesday.
At the opening of the Asian session yesterday, the price was seen testing the resistance level of 1.06000 but like previous sessions, the price still failed to break higher.
The decline was displayed to continue into the European session and triggered a signal for a bearish price movement when it began to fall below the Moving Average 50 (MA50) resistance line on the 1-hour timeframe of the EUR/USD chart.
The decline continued into the New York session approaching the 1.05000 support level that was broken last week.
Once again, the price reacted by bouncing off that zone to close the end of the session trading around 1.05400.
The tendency is for the price to continue the downward pattern, but will test the support at 1.05000 again.
After breaking lower, the price will record another new low this year with the target of heading towards the 1.04000 zone.
On the other hand, if the 1.05000 support is not successfully broken and the price bounces up, the resistance at 1.06000 will be the focus.
A break above that level will be a bullish signal for the price to continue rising towards around 1.07000.
