The strengthening of the US dollar is seen to continue on Tuesday's trading yesterday, but up to the European session only, in the next session it showed a decrease again.
Uncertain price movements will be expected for today (Wednesday) as the pulse heats up ahead of the upcoming FOMC meeting results, early Thursday morning.
Signals regarding interest rate cuts by Federal Reserve (Fed) Chairman Jerome Powell will be a critical indicator driving the direction of market movements.
On the price chart of the EUR/USD currency pair yesterday, it can be observed that the bearish pattern is still displayed with the price falling to a lower level.
The price dropped to a 3-week low reaching around 1.08350 before bouncing back 30 pips.
The price movement is flat around 1.08600 in the Asian session this morning and is still below the barrier line of the Moving Average 50 (MA50) on the 1-hour time frame on the chart which still shows a bearish signal for the price.
If the bearish pattern continues today, the 1.08350 level reached yesterday is likely to be overcome before the price drops lower.
Next, the price will test the concentration zone at 1.08000 if the price remains to continue its decline.
On the other hand, if the price rises above the MA50 barrier again, the 1.09000 zone is again the focus to be tested as the nearest resistance zone.
A move higher after a trend change signal would expect a rise to lead up to the next concentration level at the height of 1.10000.
See the picture of the price chart of the EUR/USD pair below for your technical analysis reference.
The chart displayed above uses the SaracenMarkets platform, open your trading account at SaracenMarkets today. – CLICK HERE – START TRADING NOW
