The US dollar is seen to still dominate the market although the previously displayed strengthening momentum has faded slightly.
Indications from hawkish comments by the Federal Reserve (Fed) will drive further strengthening of the currency after the minutes of the FOMC meeting were also scrutinized by investors earlier this morning.
In addition, the strengthening of the US dollar was driven by the escalating Russia-Ukraine war following the announcement of US President Joe Biden for new sanctions on Russia while Europe still failed to reach an agreement on Russian coal sanctions.
On the price chart of the EUR/USD pair, the price has slipped below the resistance level of 1.1000 to continue last weekend’s price decline.
Price movement below the Moving Average 50 (MA50) barrier level still signals for a bearish trend.
But the slightly gloomy momentum of the US dollar in Wednesday's trading saw the price 'rest' at the 1.09000 support zone.
A lower decline is expected towards the support zone at 1.08000 to record the latest 4 -week low.
If the level is also successfully passed, the focus is on the 1.0700 zone where the level was last touched by the price was in March 2020.
On the other hand if the price makes a rise above the MA50 resistance level, the initial signal for the change of the bullish trend will retest the resistance at the 1.1000 level.
And for a higher rise will re -target at the resistance zone 1.12000.
