In line with analysts' expectations, the US dollar continued to move bleakly when it significantly lost value in yesterday's trading session in New York following the release of data on consumer confidence in the United States (US).
Japan's intervention, China's good economic growth data reading and gloomy US economic data reading are among the factors that pressure the US dollar at the moment.
Thus, most of the other major currencies showed a recovery taking advantage of the US dollar's declining situation, especially the Euro.
Analysts also see the potential for the Euro to continue to strengthen ahead of the European Central Bank (ECB) policy meeting with an expected aggressive interest rate hike of 75 basis points by the central bank.
The price chart of the EUR/USD currency pair is seen to continue the bullish trend when the jump of 130 pips in the New York session yesterday has passed the 0.99000 zone resistance.
The latest high was recorded around 0.99750 before the price movement started to slow down and flatten around 0.99500 continued in the early trading of the Asian session this morning (Wednesday).
Signals of bullish movement continue to be assessed by investors when the Moving Average 50 (MA50) level is seen to continue to support the price to rebound to make an increase in the movement in the 1-hour time frame on the EUR/USD chart.
Therefore, the price looks likely to continue the rise higher with the nearest target to test the 1.0000 parity zone.
In fact, the price has the potential to reach its latest 6-week high as the rise continues with the next target being around 1.01000.
However, if the price starts to reverse direction and make a decline again, the initial price support is seen at the 0.99000 zone first before the price reaction is evaluated for further movement indicators.
If the price breaks below the MA50 support level, the signal for a bearish trend change will push the price back to the previous concentration zones around 0.98000 and 0.97000.
