Following in the footsteps of the Federal Reserve (Fed), the European central bank also kept interest rates unchanged at its last policy meeting for 2023 yesterday.
The European Central Bank (ECB) kept interest rates at 4.50% and President Christine Lagarde stated that they are not discussing an interest rate cut.
Thus, the Euro managed to show strengthening in the New York session yesterday, but analysts still warned about the ECB's stance which is seen to remain 'dovish'.
The weakening of the US dollar is seen as a factor that drives the increase for the Euro, with the market's focus at the end of the week going to the manufacturing and services PMI data of Europe and the United States (US) which will be published shortly.
Observing the price movement on the EUR/USD currency pair chart, the price surge since the FOMC meeting until the ECB meeting has exceeded 200 pips.
The price that managed to break the 1.08000 level has reached the height of 1.10000 which is the resistance zone that has been expected to be tested.
The price reaction around that was observed when the price started to flatten below it until the end of the New York session connected to the opening of the Asian session this morning (Friday).
If the 1.10000 resistance is successfully breached, the price's latest high level will be recorded for the 4-month trading period.
The target is to head around 1.10600 before reaching a high at 1.11000 if the bullish momentum is successfully maintained.
On the other hand, if the price fails to pass the 1.10000 resistance like the situation at the end of last November, the price can fall again to close the end of the week lower.
Some concentration levels such as the 1.09000 or 1.08000 zone will become the focus again for the price decline.
