The US dollar continued its declining performance from the beginning of the week until yesterday as the market focused on Federal Reserve (Fed) Chairman Jerome Powell's speech in Washington DC yesterday.
Although there is no indication of when the interest rate cut will be done, but investors evaluate Powell's speech in a dovish tone and this has had a significant depreciation effect on the US dollar.
Powell noted that the Fed is on track to cut interest rates this year.
The continued depreciation of the US dollar gives room for most other major currencies in the market to rise, including the Euro.
As can be seen on the chart of the EUR/USD currency pair, the price continued its upward trend on Wednesday's trade yesterday reaching a new 6-week high.
Overcoming the levels of the past weeks, the price managed to break through the expected 1.09000 zone and the price reaction around that was observed.
The increase did not continue, instead the price was flat for a while in the 1.09000 zone until it continued in the trading of the Asian session this morning.
The price movement still remains above the Moving Average 50 (MA50) support line indicating a signal for a continued bullish trend for the price.
The price increase if successfully continued from the 1.09000 zone will continue to record the latest high level again this week.
The target will still be directed to the 1.10000 level as the next focus to be achieved.
However if the price pulls back below 1.09000, a downside will be observed if the price will break through the MA50 support.
If it breaks lower, the 1.08000 zone will be the target to be retested as the nearest support for the price.
