Market sentiment earlier in the week was seen as risky following a report by Turkish President Tayyip Erdogan that he had sacked the governor of the central bank of the Republic of Turkey, which caused other major currencies in the market to also be hit hard by declines.
The expected strengthening of the US dollar earlier in the week failed to be sustained as US treasury yields fell back from a 14 -month high reached earlier and put pressure on the US dollar again.
Meanwhile, the Wall Street market also closed at a high level also affecting the decline in the value of the US dollar in the market.
The European currency is at risk following reports of tensions between the UK and the European Union (EU) over the vaccine issue.
The EU is threatening to stop vaccine exports to the UK in the wake of the issue of slow vaccine deliveries and becoming a big problem in Europe.
However, the Euro managed to move stronger against the US dollar in the European session yesterday in connection with the New York session.
On the chart of the EUR/USD pair, it can be seen that the price started trading with a horizontal movement at the level of 1.19000 in the Asian session yesterday before the price jumped almost to the level of 1.19500.
Passing the Moving Average 50 (MA50) support level on the 1 -hour time frame returns an early signal for the price to start a bullish trend on the EUR/USD chart.
Still, pressure by EU-UK tension factors could drag the Euro currency back to a weak move again. But it also depends on changes in the value of the US dollar in the market.
If the price plunges again, the price zone of 1.19000 will be the support zone for the price to rebound.
A fall in the price to a lower level will push the price up to the support zone 1.18000 to record the latest 4 -month low.
On the other hand if the price manages to continue higher, the resistance zone at 1.20000 remains a price target that has not been broken several times before.
Higher gains are targeted to head to the next focus zone around 1.20600-1.20900.
