After the market in America was on holiday at the beginning of the week, vibrancy was felt again in the opening trade of the New York session yesterday (Tuesday) saw the US dollar has started to show its dominance.
In addition to being supported by the strong housing data in the United States (US) published yesterday, investors are really looking forward to the strengthening of the US dollar following the hawkish signal by the Federal Reserve (Fed) to raise interest rates again after this.
Thus, the US dollar has put pressure back on most of the major currencies that were 'rampant' until the close of trading last week.
The Euro, which strengthened last week after the European central bank (ECB) raised interest rates at its latest policy meeting, was once again pushed by the strengthening of the US dollar.
On the price chart of the EUR/USD currency pair, the increase displayed last week began to change its pattern this week.
The flat price movement on Monday saw an early decline in yesterday's New York session.
The price hovering below the Moving Average 50 (MA50) barrier on the 1-hour time frame on the EUR/USD chart is a signal for a bearish trend movement.
It is likely that further declines will occur after this with the price expected to head towards the 1.08000 concentration zone.
The continued decline will test the next level at 1.07000 which was the support zone for the price before.
However, if the price manages to continue the rebound, a rise above the MA50 barrier will target the price to reach the height of 1.10000.
The latest high level will be recorded again with the increase if it continues to reach around 1.10700.
