Federal Reserve (Fed) Chairman Jerome Powell's speech early this morning has invited different perceptions on the direction of market movements and also has an impact on price movements.
Following on from last week's dovish statement, Powell expects inflation to decline significantly this year.
However, the statement slightly changed direction when Powell also indicated that interest rate hikes will continue following the release of last week's strong employment data.
Therefore, the US dollar currency in yesterday's trading session in New York, initially decreased, is seen to rise again.
If you look at the price movement on the EUR/USD currency pair chart, the price drop was exhibited in the European session until it reached the level of 1.06700.
However, a jump of almost 100 pips occurred to see the price test the barrier level of the Moving Average 50 (MA50) on the 1-hour time frame on the EUR/USD chart.
Then the price dropped again after failing to cross the MA50 barrier showing that the price movement is still in a bearish trend.
The lower decline will continue if the price drops back below the 1.07000 level and surpasses the level reached yesterday.
Next, the price is seen to go to the next concentration level which is at 1.06000.
However, if a surge occurs beyond the MA50 barrier, it will be an early sign for investors to expect the price increase to begin.
The initial target to reach is at 1.08000 before the rise continues towards the focus level of last week around 1.09000 and the resistance of 1.1000.
