The US dollar remains at an advantage in a market environment that is still at risk with the uncertainty of the war crisis between Russia and Ukraine that has not yet ended.
However, the strengthening of the US dollar has not been so significant and there is still room for other major currencies to strengthen against it.
Like the Euro in Tuesday's trading, it managed to strengthen against the US dollar after speculation arose that the European Central Bank (ECB) would raise interest rates by 50 basis points before the end of the year.
As a result, there was a price increase on the EUR/USD currency pair chart in the European session connected to yesterday’s New York session.
Earlier, the price movement in the previous Asian session saw the price decline below the support level of 1.1000 with the daily low reaching 1.09600 before displaying a surge of around 80 pips in subsequent sessions.
After analysts assessed early signals for a bearish trend earlier in the week, investors still need to be vigilant after the surge exhibited yesterday.
The Moving Average 50 (MA50) barrier level on the 1 -hour time frame on the EUR/USD chart was tested after the surge and investors are examining the price reaction around it for further price movement indicators.
If the price signals to continue higher, the SBR (support become resistance) zone around 1.11300 will be tested to try to overcome the high reached last week.
A higher rise to break through the SBR zone will push the price to the focus level of 1.12000.
However, if the price resumes the decline to move in a bearish trend, the price will drop to the level around 1.0900 which is the price support level in early trading last week.
Further lower declines are expected to reach the support zone at 1.08000, or record the latest low of 2 years after passing the zone.
