The US dollar was seen to fail to stand out in yesterday's trading session in New York as the market focused on the statement delivered by the Chairman of the Federal Reserve (Fed) Jerome Powell in Washington DC.
In his speech, he once again reiterated the need to further increase interest rates to bring inflation down to the target level.
Powell will speak again today (Thursday) before the Senate Banking Committee and it is expected that no new guidance will be given.
The US dollar moved weakly again in the market, not continuing its strengthening in addition to the decline in the yield of the United States (US) treasury.
This opportunity was once again taken advantage of by the Euro currency which was driven to a new 6-week high towards expected levels.
On the price chart of the EUR/USD currency pair, the price that leveled above the 1.09000 zone at the beginning of the week finally resumed its surge towards the concentration level at 1.10000.
The trend turned bullish again with price movement signals above the Moving Average 50 (MA50) support level again on the EUR/USD chart.
Prices could continue to climb higher as the Euro moves back on track after a hawkish signal by the European central bank (ECB) last week that has raised interest rates.
If the price manages to break through the resistance at 1.10000, a further move higher is seen heading towards around 1.10700 to test the zone.
The continued rise will reach a new high with a target to reach 1.12000.
However, if the 1.10000 level is difficult to break through, investors will wait for a signal to change the direction of the price movement again.
Dropping below the MA50 support, the price is likely to move lower below the 1.09000 zone.
Next, the RBS zone (resistance becomes support) at 1.08000 will be tracked again in the continuing downward pattern.
