The US dollar showed its strength again in the early trading yesterday after a rather gloomy performance at the end of last September.
Several factors are seen to be supporting the strengthening of the US dollar which saw the dollar index rise to the highest level since November 2022 while the 10-year bond yield of the United States (US) reached its latest record high since 2007.
Other major currencies in the market failed to withstand the strengthening of the US dollar, including the Euro which fell to a new low yesterday.
Examining the price chart of the EUR/USD currency pair, the price's attempt to reach the 1.06000 level was unsuccessful which then saw a continuous decline until the end of the New York session.
The price plunged past the support level of 1.05000 and closed the New York trading session at around 1.04770 while recording the latest 10-month low.
The bearish trend movement is expected to continue after the price has also returned to move below the Moving Average 50 (MA50) obstacle level on the 1-hour time frame on the chart.
The next target for a lower drop is towards 1.04000 with the expectation that there will be a price reaction at that concentration zone.
In the event of a rebound, the 1.05000 level will be the initial resistance that the price will test.
After successfully breaking through it, the price is expected to return to the 1.06000 zone which is the resistance zone also tested last week.
