The US dollar has seen a dismal performance for the past few days, retreating from 20-year highs as cautious investors await guidance from the Federal Reserve (Fed) Chairman at the Jackson Hole Symposium on monetary policy.
The economic growth data of the United States (US) will be published in the New York session tonight and will be the focus of investors who expect to drive the movement of the US dollar.
Meanwhile, the Euro currency is still affected by the energy crisis in Europe with concerns about the closure of the Nord Stream 1 pipeline by Russia due to maintenance work at the end of August, Tuesday, 3 days.
Examining the price movement on the chart of the EUR/USD currency pair, the price is still seen hovering above the current support level of 0.99000 with resistance still at the parity level of 1.0000.
There was an increase in the price in the New York session yesterday around 90 pips, but it is seen that the parity level of 1.0000 remains an obstacle that prevents the price from leaving the horizontal zone.
However, breaking the Moving Average 50 (MA50) barrier on the 1-hour time frame on the EUR/USD chart could trigger early expectations for prices to start a bullish trend again.
The rally needs to break the 1.0000 resistance before continuing higher for a clearer bullish signal.
The target for a higher increase is to return to the previous concentration levels, especially at the 1.01000 resistance before going to the 1.01600 level.
On the other hand, if price continues to fail to break above the 1.0000 level, the decline is likely to continue above the support level at 0.9900.
A dip lower has the potential to reach up to around 0.9800 to record a recent 20-year low.
