The US dollar re-strengthened its position in the market this week as it gained an edge in risky market sentiment as a safe-haven currency.
The dollar index measured past a 2 -week high even as U.S. treasury yields rebounded after soaring to a 14 -month high last week.
The US dollar is seen to easily outperform other major currencies in the market to give investors a clearer direction of price movements.
As shown on the chart of the EUR/USD currency pair, the price plunged to a lower level after passing the support level of 1.19000.
Until the resumption of the Asian session trading on Wednesday morning, the price has reached the support level in early March around 1.18350.
It is likely that the price will rise slightly first before continuing the decline in the European session and the New York session.
The lower price decline is seen heading into the support zone at 1.18000 to record the latest 4 -month low.
If the price makes an increase, the resistance level of 1.19000 will be the focus for the price to test the SBR zone (support become resistance).
A rise past the Moving Average 50 (MA50) barrier on the 1 -hour time frame of the price movement will be an early signal of a reversal of the bullish trend on the EUR/USD chart.
Investors will monitor current market sentiment affecting US dollar trading while focusing on the release of European economic data today for Euro trading.
