If the US dollar weakened at the beginning of the week, the king of the currency showed its strengthening again on Tuesday's trading yesterday.
The US dollar was supported by the speech of the President of the Federal Reserve (Fed) of Richmond, Thomas Barkin, who was seen to be more hawkish, where in reality, depending on the current situation, the central bank may have to maintain monetary policy tightening measures.
After strengthening at the beginning of the New York session, the US dollar started to calm down towards the end of the session following the United States (US) home sales data for July recorded lower figures than forecast.
Concerns ahead of the Jackson Hole Symposium conference are expected to continue to make price movements in an uncertain state and the published manufacturing and services PMI data will also be monitored.
On the price chart of the EUR/USD currency pair, the bullish pattern at the beginning of the week started to change, resuming the bearish movement of last week.
The price that has made an increase reaching the level of 1.09300 in the European session has then plunged almost 100 pips.
The price reached a level around 1.08330 having surpassed last week's level, as well as recording a recent 10-week low.
Horizontal price movement at the close of the New York session until continuing trading at the beginning of the Asian session this morning (Wednesday), but the price that is below the Moving Average 50 (MA50) barrier on the 1-hour time frame on the EUR/USD chart gives a bearish indication.
With the momentum of yesterday's plunge, the price is expected to continue its decline towards the target of 1.08000 for investors to pay attention to the price reaction in the important zone.
However, if there is a rebound, the 1.09000 zone will still be a resistance to be tested where yesterday's price increase also failed to pass.
If the price manages to break through the zone, the increase will continue towards a higher concentration level which is around 1.10000.
