The US dollar is still failing to give a clear price movement direction towards the end of the week with factors hovering in the market seen to be mixed.
The decline in U.S. treasury yields put little pressure on the U.S. dollar, but a decline in U.S. stock markets that triggered risky signals for the market could re-support the U.S. dollar as a safe-haven currency.
The Euro was seen moving higher against the US dollar in Wednesday's trading while investors' focus today will be on the outcome of the European central bank meeting.
The European Central Bank (ECB) is expected to announce the termination of its previous stimulus program and is likely to still maintain interest rates.
Still, it is possible for rate hikes could happen faster, creating surprises in the market.
On the price chart of the EUR/USD pair, the price has returned to display the bullish pattern again yesterday past the barrier at 1.07000.
The initial signal for a bullish movement is when the price starts moving above the Moving Average 50 (MA50) support level on the 1 hour time frame again.
The hawkish decision by the ECB will push the price to continue higher with the price target to test the resistance zone at 1.08000.
The rise that successfully penetrates the zone will record the latest high of 6 weeks with the next target being around the 1.09000 high.
On the other hand if the outcome of the ECB meeting is judged to be more dovish in tone, the decline of the Euro could push prices to plummet again.
Moving back below the 1.07000 level will then expect the price to decline towards the RBS (resistance become support) zone of 1.06000 after the price overcame the support levels of the previous week.
The continued decline will lead to the focus zone around 1.05000 to show a clearer trend movement.
