As expected by market analysts, the US dollar has shown its strengthening again after being supported by the United States (US) consumer confidence survey data published yesterday.
After moving weakly in the previous session, the US dollar managed to strengthen in the New York session and cut back the losses recorded at the opening of the week.
The re-strengthening of the currency king has changed the price pattern of movements on the major charts.
As examined on the chart of the EUR/USD currency pair, the price initially resumed a slight increase yesterday to retest the resistance zone at 1.09000.
However, after failing to hold, the price reversed direction and made a decline again in the New York session until it dropped to a level around 1.08550 at the close of the session.
Slow price action resumed the opening of the Asian session this Wednesday morning but prices have been seen below the Moving Average 50 (MA50) barrier line on the 1-hour time frame on the EUR/USD chart, giving an early signal for a trend change to begin.
A further drop in price will be expected to reach the support level of 1.08000 for the RBS (resistance become support) zone to be tested again.
If it breaks down, the price will slide lower with the expectation to reach the concentration level around 1.07000.
Meanwhile, if there is another surge in prices, the 1.09000 resistance zone will return as a target to be tested which has not yet succeeded in breaking through the price.
If the price breaks through that resistance, the latest 10-week high will be recorded with the target moving to a new focus level at 1.10000.
