As the conflict in the Middle East has eased slightly compared to before, the US dollar has continued to decline to continue its weak move towards the end of June trading.
Market focus is now shifting to the direction of the Federal Reserve's (Fed) monetary policy, which also influences the current direction of the US dollar.
Fed Chairman Jerome Powell still maintains his stance for interest rates to be maintained while watching the impact of the Donald Trump administration's tariffs on inflation.
With the continued decline of the US dollar, the movement on the EUR/USD currency pair chart continues the upward trend to a new 3-year high.
After a surge at the beginning of the week, the price slowed down around the 1.16000 zone and then extended its rise in the New York session yesterday to the 1.16600 level.
Not stopping there, the rise continued in the Asian session this morning (Thursday) testing the latest focus level at 1.17000 which is seen as a price resistance zone with a slight slow retreat.
The price is still above the Moving Average 50 (MA50) support line on the 1-hour time frame of the chart, maintaining a bullish signal.
If the price continues to move strongly above 1.17000, the price will record a new 3-year record with the target moving to 1.18000.
For the expectation of a price decline if it occurs, the 1.16000 zone will be the closest focus and the price reaction will be observed.
A break lower could trigger a price trend change signal again and it is possible that the decline could extend to 1.15000.
