The price movement situation over the weekend was not as expected by investors after the US dollar continued to depreciate despite the Federal Reserve (Fed) meeting its forecast to raise interest rates.
Still, analysts are of the view that the US dollar will rebound again with a number of other factors seen to support it such as the risk of a Russian-Ukrainian war crisis.
The depreciation of the US dollar over the weekend has provided an opportunity for most other major currencies in the market to trade upwards.
Like the price movement on the EUR/USD currency pair chart, the price continued trading until yesterday’s New York session recording its latest high over last week.
After the depreciation of the US dollar following the reaction to the FOMC meeting, the price has made a rise above the 1.1000 level to reach a high of around 1.11370.
The price then declined again after testing the SBR (support become resistance) zone which is the focus of market analysts.
The price was slightly lower and moved slowly in the Asian session on Friday morning around the 1.11000 level.
If the bullish pattern is successfully maintained at the close of trading this week, the high level at 1.12000 will be the target to be tested.
And for a rise on the more obvious bullish trend movement, the price is potentially heading back up to the highs of 1.13000 and 1.14000.
On the other hand if investors have already received an indication for the price to make a decline again, pass the decline below the 1.1000 level and also support the Moving Average 50 (MA50) on the 1 hour time frame of the price movement, will push the price target to a lower level.
The support zone at 1.08000 will return to the focus of the price for further decline after the zone tried to be tested in early trading last week but the price failed to break through.
