The US dollar showed a stronger strengthening on Tuesday yesterday after investors continued to assess the Federal Reserve's (Fed) monetary policy projections for 2024.
A speech delivered by Fed governor Christopher Waller signaled that the central bank needs to remain vigilant and monetary policy easing may be delayed for now.
A decrease in fixed interest rates is expected to occur but may not be as fast as previously predicted.
With the strengthening situation of the US dollar, most other major currencies in the market including the Euro experienced downward pressure.
Although German Zew survey data published yesterday was positive, it still failed to support the strengthening of the Euro against the US dollar.
It can be observed on the chart of the EUR/USD currency pair, the price has displayed a bearish pattern with a decline starting from the Asian session until the end of the New York session.
The latest low was successfully recorded when the drop has reached near the 1.08600 level before the price movement is flat in the Asian session this morning (Wednesday) around 1.08700.
With the price moving below the Moving Average 50 (MA50) barrier on the 1-hour time frame on the chart, further declines are expected to continue.
The next target is for the price to reach the support zone at 1.08000 which will record the latest 5-week low.
However, if the price shows a rebound, the MA50 barrier will be tested and if broken will signal a change in the trend for the price.
The increase will continue to test the resistance level at 1.10000 which was immune from being broken during the previous week's attempts.
