What can be expected for price movements in the market? Investors are still watching for clearer clues.
The US dollar strengthened at the opening of the New York session yesterday as President Donald Trump sparked new concerns with his threat to impose a 50% tariff on copper imports.
However, the US dollar moved back down towards the end of the session with global tariff developments seen as the main driver for the time being.
Observing the movement on the EUR/USD currency pair chart, the price has 'bowed' slightly since the opening of trading earlier in the week.
The decline in price tested the 1.17000 zone on Monday and Tuesday yesterday which is seen as current support for the price.
However, it has not yet managed to break lower, the price is showing a rebound from the zone while the price increase is limited below the Moving Average 50 (MA50) resistance line on the 1-hour timeframe of the EUR/USD chart.
A bearish signal expects the price to drop lower, but must first break through the crucial 1.17000 zone which is a challenge.
If it breaks below, the price decline will extend to a 2-week low with a target of heading towards 1.16000.
On the other hand, if the price continues to bounce up from the 1.17000 zone and then breaks through the MA50 barrier, investors will see it as an indication of a resumption of the price bullish pattern.
The resistance zone at 1.18000 will again be the focus for testing after the price failed to break through that zone on last week's rise.
