The dismal performance of the US dollar on Wednesday disappointed investors who expected the currency king to continue strengthening.
A hawkish speech was delivered by Federal Reserve (Fed) Chairman Jerome Powell regarding monetary policy, but the US dollar failed to move strongly in the market.
Analysts, however, see the price movement as a correction and expect the US dollar to strengthen again after this.
If observed on the chart of the EUR/USD currency pair, the price has landed at the 1.06000 support level last Tuesday after taking a significant plunge since last week's trade.
However, on Wednesday yesterday the price began to show a pattern of rising again to the level of 1.06750 making investors wary of the early signal of the trend change.
The rise in price has crossed the Moving Average 50 (MA50) barrier line on the 1-hour time frame on the EUR/USD chart following the decline in the US dollar driving the rise.
For the expectation of a continued increase today, the 1.07000 level is the closest resistance that will be tested and will try to be broken by the price.
A higher rise past it will lead to the next concentration level which is around the height of 1.08000.
However, if the price pulls back lower, the 1.06000 support level is likely to be tested again before a price reaction around that is seen.
If that level is broken, the price will resume the bearish trend of last week with the target moving to the next concentration level at 1.05000.
