Although it moved rather gloomy in the Asian and European sessions yesterday, the US dollar still managed to show further strengthening in the New York session.
In addition to the risky market sentiment, the strengthening of the US dollar was successfully maintained after the market examined the minutes of the FOMC meeting earlier this morning.
Through the details of the minutes, some members of the Federal Reserve (Fed) are seen still focusing on lowering inflation. Thus, the move to raise interest rates is still seen as the central bank's choice, in addition to being supported by economic data that has been published.
It can be seen that the price movement on the chart of the EUR/USD currency pair seems to continue the bearish pattern with the latest drop in price having surpassed the previous low.
Last Monday the price reached a level around 1.08750, but the latest drop in the New York session yesterday continued until the Asian session this morning (Thursday) has successfully overcome it.
The signal remains bearish with the price movement hovering again below the Moving Average 50 (MA50) barrier level on the 1-hour time frame on the EUR/USD chart.
This latest price drop has set a new low for a 6-week trading period.
If the strengthening of the US dollar continues until the end of the week, the price could reach the concentration level at 1.08000 for the lowest record since mid-June.
But investors need to be prepared for the risk of price changes that can occur in the market especially at the end of the week.
A price surge that breaks through the MA50 barrier and moves above the 1.09000 level will be an early indication of a bullish trend change again.
The upside is likely to continue towards a return to the previous resistance level around 1.10000.
