The USD is once again making an attempt at retaining the throne as the king of currencies after gaining support from the 10 -year increase in U.S. treasury yields.
But the USD is still showing mixed data collection after the dismal US NFP data release even though the Federal Reserve (Fed) is ready to implement tapering measures.
Investors' focus will now be on the publication of consumer price data in the US which is a bit possible to expect to support the hawkish signal delivered by the Fed recently.
Again the price on the EUR/USD pair chart seems to have only tested the Moving Average 50 (MA50) barrier level in Monday’s New York session before re -showing a decline.
The decline is also seen to be blocked by the SBR zone (support become resistance) 1.13000 from continuing to jump to plummet again until it has already passed the trendline support.
These factors are indirectly likely to push the price movement to remain a plunge show which today (Tuesday) the price seems to be making a reversal.
If the reversal pattern displayed is valid, then investors will most likely expect the price on the EUR/USD chart to continue falling which is expected to hit the support zone of 1.12000.
More aggressive momentum will see the price move to the lowest level around 1.11900 which then the latest low will probably be able to create again.
On the other hand, if the price goes up again, the SBR 1.13000 zone will definitely be the target to be achieved after the zone often prevents the price spike from happening.
Thus, the next SBR zone at 1.14000 may be used as a zone to be tested if the price is able to penetrate the SBR zone which will also give an early signal of a bullish trend.
