Not much change took place in the financial markets yesterday seeing the US dollar still remain dominant despite the previous strengthening momentum slightly fading.
Investors ’focus is still on hawkish central bank policy especially when the minutes of the FOMC meeting were published early yesterday morning, while the development of the Russia-Ukraine war conflict is still being monitored.
The United States (US) further expanded sanctions on Moscow with US companies blocking investment from Russia.
At yesterday’s European session, investors scrutinized the minutes of a meeting by the European Central Bank (ECB) published that gave indications for an interest rate hike in the third quarter.
However, the minutes report did not have a significant impact on the movement of the Euro currency yesterday, and even remained gloomy against the US dollar.
Examining the price movement on the chart of the EUR/USD currency pair, the price was seen flat on Thursday's trading yesterday as the previous day hovered at the 1.09000 zone.
Yet after a slightly rising price remained constrained by the Moving Average 50 (MA50) barrier level on the 1 -hour time frame, the price slightly declined and flattened below the 1.0900 zone until the end of the New York session.
With the price movement signal still in a bearish trend, a lower decline in the price will be expected towards the support level of 1.08000.
If a lower decline occurs beyond that level, the next price focus is seen around 1.07000 to record the latest 2 -year low.
On the other hand, if the situation changes and the price starts to rise past the MA50 barrier, the initial signal for a change in the bullish trend will push the price towards the resistance level of 1.10000.
Further higher gains will target the 1.12000 resistance zone which was also the focus of last week’s trading.
