Risky market sentiment fueled by the Russia-Ukraine war has made investors wary of any change in the movements of major currencies.
As expected, the US dollar on Wednesday yesterday began to show its strengthening pattern after moving weakly since the opening of trading earlier in the week.
Although the strengthening exhibited is not very significant, but market analysts see the potential for the safe-haven currency following the risk-off market sentiment.
Examining the price movement on the chart of the major currency pair EUR/USD, a bearish pattern was displayed throughout yesterday's Wednesday trading.
At the opening of the Asian session yesterday, the price was seen testing the resistance level of 1.06000 but like the previous sessions, the price still failed to break through higher.
The drop appeared to continue into the European session and triggered a signal for bearish price movement when it started to break below the Moving Average 50 (MA50) barrier line on the 1-hour time frame on the EUR/USD chart.
The decline continued into the New York session approaching the support level of 1.05000 which was reached last week.
Once again the price reacted by bouncing out of that zone to close the session's closing trade around 1.05400.
The tendency is for the price to continue the downward pattern, but will again test the support at 1.05000.
After breaking lower, the price will record another new low of the year with a target to reach the 1.04000 zone.
On the other hand, if the 1.05000 support is not successfully penetrated and the price bounces up, the resistance at 1.06000 will be the focus.
A break above that level will be a bullish signal for the price to continue rising towards around 1.07000.
See the picture of the price chart of the EUR/USD pair below for your technical analysis reference.
The chart displayed above uses the Saracen Market platform. Redeem a $5.00 no deposit bonus if you sign up today CLICK HERE – SIGN UP AND REDEEM NOW
