The Euro weakened further yesterday, falling to a 1-year low as the US dollar continued its strengthening pattern.
The situation was driven by the market's reaction to the United States (US) inflation data which was published with a figure that increased to 2.6% in October, in line with forecasts.
The situation that is seen to make it difficult for the Federal Reserve (Fed) to continue the policy easing measures adds support to the US dollar in addition to the sentiment factor of Donald Trump's victory.
Therefore, investors are watching for a further drop in the price on the EUR/USD currency pair chart to a lower level yesterday after passing the level last April at 1.06000.
The drop in price hit a new low of around 1.05600 in the New York session yesterday before the slow price around that continued into early trading in the Asian session this morning (Thursday).
The price trend remains bearish with the price movement signal still below the Moving Average 50 (MA50) obstacle line on the 1-hour time frame on the chart.
The price trend is to continue the decline lower with the next target being the 1.05000 zone.
However, if there is a change in the current situation of the market that sees a price rebound, the increase will approach the 1.06000 level as the initial resistance to be tested.
If it successfully passes the resistance and also the MA50 barrier, it will give an early signal for a change in the price movement trend.
The increase can be extended back to last week's concentration levels such as at 1.07000 or 1.08000.
See the picture of the price chart of the EUR/USD pair below for your technical analysis reference.
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