The US dollar managed to strengthen its position in trading this week putting pressure on other major currencies in the market.
The main factor seen to support the strengthening of the US dollar is the hawkish indication by the Federal Reserve (Fed) regarding its monetary policy based on comments by Fed Governor Lael Brainard.
His positive comments have also pushed a spike in the 10 -year U.S. treasury yield to its latest high since April 2019, around 2.60%.
Thus, investors can see the price decline on a more pronounced bearish trend on the chart of the EUR/USD currency pair in Tuesday's trading.
Meanwhile, the Euro continued to trade weak following the pressures of the Russia-Ukraine conflict that impacted the European economy.
The euro, which is moving under pressure in addition to the strengthening US dollar, will push investors' expectations to see prices decline lower towards the end of the week.
With the 1.1000 level remaining a resistance, the price has made a continuation of yesterday’s decline until the end of the New York session to the expectation zone at the first ‘checkpoint’ of 1.09000.
If the strengthening of the US dollar is maintained, the price will continue to decline lower towards the 1.0800 support zone.
Prices that remain moving below the Moving Average 50 (MA50) barrier level on the 1 -hour time frame on the EUR/USD chart are expected to continue moving in a bearish trend.
If the price movement starts to shift in the direction of making a rise and passes the MA50 barrier, investors need to be vigilant for price trend changes.
A rise that passes the resistance at 1.1000 is likely to climb back to a height around 1.12000 to test the resistance zone.
