The strengthening of the US dollar failed to continue with a significant depreciation of the currency's value in the New York session yesterday.
The removal of Federal Reserve (Fed) Chairman Jerome Powell by President Donald Trump has once again become a focus issue, but Trump denied the news published by Reuters.
Investors still reacted negatively to Trump's threat, which was seen as threatening the credibility of financial institutions and also the status of the US dollar.
If you look at the movement on the EUR/USD currency pair chart, the price managed to reach a new low yesterday near 1.15600.
However, the price later showed a significant jump in the New York session with an increase of around 160 pips in just 2 hours.
The jump that exceeded the 1.17000 level slowed down again before the price closed the trading session at around 1.16300.
The price moved weakly in the Asian session this morning (Thursday) dipping below the Moving Average 50 (MA50) resistance line on the 1-hour time frame of the EUR/USD chart.
Observing the bearish signal on the current movement, the price falling below the 1.16000 level will push the decline lower from yesterday's level.
Next, the target shifts to the 1.15000 zone if the downtrend continues until the end of the week.
On the other hand, if there is still another surge after this, the 1.17000 level will continue to be challenged as an important level to be broken.
Breaking through the barrier will provide a clearer signal for a trend change before the increase returns to target the previous focus resistance zone, which is at 1.18000.
