The protracted energy crisis in Europe continues to attract the attention of investors which is seen as one of the main factors affecting the movement of the Euro currency in the market.
Most recently, it was reported that Germany is planning to postpone the closure of their last 3 nuclear power plants following the reduction of the energy supply channel from Russia up to 20% capacity through the Nord Stream 1 channel.
Thus, the Euro remains traded at risk until this week coupled with the publication of European economic sentiment survey data published yesterday with gloomy readings.
Although the Euro moved weakly in the European session yesterday, it managed to register an increase against the US dollar in the New York session driven by the re-decreasing factor of the king of the currency.
The US dollar began to relax the momentum of the strengthening earlier in the week as investors are likely to be seen taking precautionary measures ahead of the release of United States (US) retail sales data as well as the minutes of the FOMC meeting which will be in focus early Thursday morning.
If you look at the price movement on the chart of the EUR/USD currency pair, the price was initially seen continuing to decline in the European session yesterday reaching a level around 1.01200 before investors saw a price rebound in the next session.
The price recorded a daily increase of around 70 pips to the level of 1.01900 before leveling off at the level of 1.01600 until the end of the New York session.
The surge in price displayed, however seen, has not yet given a clear indication for a change in trend as the price remains hovering below the Moving Average 50 (MA50) barrier level in the 1-hour time frame.
If today's rally breaks above the MA50 barrier, it is likely that the price could bounce back towards the 1.02400 level to test that resistance.
Next, for a higher increase, the 1.03000 level will be the focus to be reached.
On the other hand, if the price continues the bearish trend, the price drop below the 1.01600 level again is likely to overcome the daily low level reached yesterday before heading to the 1.01000 level.
An extended drop lower will again trigger expectations for price to fall back to the key support zone of 1.0000.
