The pressure is increasing for the US dollar which has been moving weakly since the previous week, witnessing a more significant decline in the value of the king of the currency in the New York session yesterday.
Although the United States (US) consumer confidence data recorded an increased figure, the focus was on the speech by Federal Reserve (Fed) governor Christopher Waller.
Waller, who is known as a 'hawkish' person, gave an outlook for interest rate cuts by the Fed in the coming months.
The dovish indicator has added to the tendency of the Fed's monetary policy towards an easing phase and at the same time pushed the US dollar to fall significantly.
On the chart of the EUR/USD currency pair, the bullish pattern clearly continued as analysts had expected.
Initially the price leveled off slowly and slipped a bit at the beginning of yesterday's European session to around 1.09400, but was seen supported by the Moving Average 50 (MA50) level on the 1-hour time frame of the chart.
The price then surged from the MA50 support level and finally reached the target level in the New York session at the 1.10000 resistance.
There was a reaction that showed the price testing the resistance which retreated a little, but the price approached that area again at the close of the New York session.
The slow price movement around the zone continues the opening trading of the Asian session this morning (Wednesday).
The trend remains bullish with the expectation that price increases will continue in the following sessions.
But investors will be careful to watch the economic growth data of the United States (US) in the New York session later tonight after first examining the German inflation data in the European session.
The expectation for the increase that will continue is to test the zone around 1.10700 before continuing towards the concentration level at the height of 1.11000.
This will be the latest high of the price for the 4 month trading period.
Meanwhile, if there is a price drop, a drop back below the 1.10000 level will see the price test the MA50 support level before determining a trend change.
It will be a bearish signal when the price breaks through the MA50 before the target will start to re-direct to around 1.08000.
