After showing consolidation at the beginning of yesterday's New York session, the US dollar ended the session's close trading significantly weaker again.
Initially, the release of data on economic growth in the United States (US) which recorded increased readings had a positive effect on the US dollar.
However, the 'happy' situation did not last long when Federal Reserve (Fed) Chairman Jerome Powell stepped into the market.
Signaling monetary policy, Powell said it was time for the central bank to slow interest rate hikes. Dovish indicator!
Although there will be no rate cut (cut rate), the increase in interest rates is expected to be slowed down to 50 basis points compared to 75 before.
Immediately upon receiving the indication, a clear market reaction was displayed on the main price charts seeing the US dollar shrink.
The price chart of the EUR/USD currency pair initially saw a jump of 100 pips from the 1.04000 level to re-reach the focus support level of 1.03000.
Once again the level of 1.03000 managed to bounce back the price and an increase of more than 100 pips following the reaction of Powell's speech has passed the resistance of 1.04000.
Continuing the momentum, the price rose around 40 pips in the Asian session from the 1.04000 level with a bullish trend movement signal being assessed by investors.
The rise is expected to continue towards the resistance zone at 1.05000 before breaking it and recording the latest 6-month high.
The target for a higher increase is seen at 1.06000 which is expected to be the price target.
However, if prices reverse course later this week as the focus turns to the US NFP jobs data report, investors will be ready for another price drop.
A drop below the 1.04000 level will lead back to the 1.03000 support level to test the critical zone.
Extending the decline to pass the next 1.02400 level will push the price expectation to the 1.01000 concentration zone.
