Changes in current market sentiment also affect changes in the direction of price movement on the main charts.
Reports of Iran's attack on Israel since yesterday have sparked concern over the increasingly tense situation in the Middle East.
It was reported that two series of attack waves were launched by Iran with more than 400 ballistic missiles raining down on Israeli airspace targeting several important locations.
The risk-off market sentiment is currently injecting a re-strengthening of the US dollar as a safe-haven currency to recover from the previous decline.
The US dollar recovered after the Federal Reserve (Fed) last week implemented aggressive interest rate cuts and Chairman Jerome Powell signaled that there will be several more cuts at the end of 2024.
Observing the price movement on the focus chart of the EUR/USD currency pair, the price has shown a clearer bearish movement signal.
Previously, several attempts to increase the price were stranded at the resistance level of 1.12000 which saw the price retreat back down again like at the beginning of this week as well.
But on Tuesday yesterday, the strengthening situation of the US dollar has pressured the price to fall lower, breaking through the 1.11000 zone which failed to hold the price.
The drop reached around 1.10500 before leveling off slowly at the end of the New York session until continuing at the early opening of the Asian session this morning.
The price tendency is still seen to continue the decline lower with a target towards the 1.10000 support zone.
If the zone also fails to contain a more severe fall in price, the latest 8-week low will be recorded for the next expectation to reach 1.09000.
However, if price increases are shown again, the closest price resistance is at 1.11000 to be crossed before higher increases can continue.
Then the 1.12000 resistance level will return to the focus to be tested again as before.
See the picture of the price chart of the EUR/USD pair below for your technical analysis reference.
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