Investors are beginning to evaluate some indicators of changes in market sentiment that have slightly recovered from the risks of a previously protracted war crisis.
Increasingly easing tensions, Ukrainian President Volodymyr Zelenskyy noted that Ukraine is ready for a diplomatic solution if Russia also agrees to do so.
As a result, the US dollar moved weaker in Wednesday's trade following a recovery in sentiment while investors were cautiously awaiting the release of US inflation data in the New York session shortly.
Thus, the price on the chart of the EUR/USD currency pair yesterday soared high recording a daily increase of around 200 pips.
This is the largest daily gain ever recorded by EUR/USD in 6 years.
The depreciating US dollar situation is also seen as giving room for the Euro to strengthen while awaiting the outcome of the European central bank (ECB) policy meeting today.
Previously, the price that has risen from the support zone of 1.0800 gave an early signal for a change of bullish trend after the rise passed the level of Moving Average 50 (MA50) on the 1 -hour time frame of price movement on the EUR/USD chart.
Finally a strong rise was exhibited yesterday reaching the level of 1.10900 in the New York session yesterday before flattening and slightly declining at the opening of the Asian session this morning.
The bullish pattern displayed has given a hint for a higher price rise testing the SBR (support become resistance) zone of 1.11300 before the expectation for the price to rise to the next level at 1.12000.
But beware if prices plummet again if the results of the ECB meeting and the published US inflation data change the direction of the current price movement.
If a decline occurs, the price is seen to try to break the 1.1000 level and test the MA50 resistance level for a signal to resume the bearish trend.
The continued decline will return to the 1.0800 level to test the support zone again.
