The US dollar's decline continued in trading on Tuesday, but the momentum has eased slightly compared to the New York session on Monday.
The market's risk-on sentiment is still driven by hopes for a ceasefire between Iran and Israel after being announced by President Donald Trump.
Although investors are still skeptical and explosions are still being heard, the market is showing a positive reaction.
In addition, the US dollar's decline is also influenced by expectations of an interest rate cut by the Federal Reserve (Fed) towards the end of 2025 and also profit-taking activities in the market at the close of second-quarter trading.
Examining the movement on the EUR/USD currency pair chart, the price extended a slight increase to a new high after breaking through the 1.16000 resistance zone.
Although the increase was slow, the price recorded a new 4-year high at 1.16400.
Price movement is quite limited and seen continuing trading in the Asian session this morning (Wednesday), the price is slowly hovering above the 1.16000 zone.
Still with the bullish signal of the price moving above the Moving Average 50 (MA50) support line on the 1-hour time frame on the chart, higher levels are expected to be reached by the price in the following sessions.
The price target is now shifting to the 1.17000 zone if the upward price pattern continues successfully.
On the other hand, if the market situation changes, the US dollar could strengthen again and the price will be pressured back below the 1.16000 level.
After a clearer bearish signal, the price is expected to approach the 1.15000 level again and then the support level from earlier this week and also last week, which is at 1.14500.
