The retail sales data of the United States (US) published in the New York session yesterday was also seen to support the strengthening of the value of the US dollar at the beginning of the session with more positive data readings that exceeded forecasts.
However, the US dollar began to calm down a bit towards the end of the session after the focus was on the publication of the minutes of the FOMC meeting which is the assessment of investors.
Based on scrutiny of the minutes, US policymakers who unanimously agreed to raise interest rates by 75 basis points are beginning to look at options to slow rate hikes.
Thus, the strengthening of the US dollar initially started to relax again and is likely to push the movement of the king of the currency to the end of the week.
The price action on the EUR/USD currency pair chart also saw the price leveling above the current support level at 1.01600 and giving an early indication of a previous reversal.
Although the Euro currency is still absorbing the pressure of the impact of the protracted energy crisis in Europe, it is seen to have managed to survive from experiencing a lower depreciation compared to the US dollar yesterday.
The price increase if it continues today will strengthen the expectations of the price decline pattern at the beginning of the week has ended.
The price increase will test the initial resistance at 1.02400 before continuing to rise higher towards the 1.03000 level.
The high level of last week is likely to be able to be reached again if the rising pattern is successfully maintained in the following week.
While the expectation for the price to drop again, passing the support level of 1.01600 and the price falling below the Moving Average 50 (MA50) level on the 1-hour time frame on the chart will be an early indication for the price to continue the previous bearish trend.
A lower decline is seen heading towards the concentration level at 1.01000 to record the latest weekly low and low for the 3-week trading period.
