After mixed movements in different sessions yesterday, the US dollar is showing a weaker performance in the Asian session this morning (Wednesday).
Statements delivered by Federal Reserve (Fed) officials in conclusion show anxiety over the current situation of the United States (US) economy, following the credit rating downgrade by Moody's.
The market will examine the release of the manufacturing and services PMI report on Thursday to assess the current health of the focus economies including the US and Germany.
Examining the price movement on the EUR/USD currency pair chart, the upward trend continues.
After a surge at the beginning of the week, the price leveled off in yesterday's trading below the 1.13000 zone but still remains above the Moving Average 50 (MA50) support line on the 1-hour time frame on the chart.
The price increase began in the New York session yesterday and continued into the Asian session this morning, the price continued to rise and has surpassed the 1.13000 zone.
With the expectation of a continued decline in the US dollar, prices could rise higher towards the target of 1.14000.
Conversely, if the market situation changes, prices could plunge again and investors evaluate the signal for a trend change.
A decline below the 1.13000 zone will see the MA50 line tested and if broken, a bearish signal will be identified.
Further declines in prices expect the 1.12000 level to be approached, which has been a focus area for the past week.
