The US dollar which began to show weakness in Wednesday's trading yesterday has opened the way for the appreciation of other major currencies in the market towards the end of the week.
Although it was a bit late to react, the majority of the market had expected the situation of the king of the currency to decline following the rather clear indications presented in the latest statement by the Chairman of the Federal Reserve (Fed) Jerome Powell earlier this week.
As is the case with the chart of the EUR/USD currency pair, the price has managed to jump to a recent 4-month high.
However, investors still need to be careful with the movement of the Euro currency today ahead of the decision of the European Central Bank (ECB) policy meeting with interest rates expected to be maintained at 4.25%.
A follow-up statement by President Christine Lagarde will drive the direction of further price movements.
After the price successfully crossed the 1.09000 zone yesterday, the price increase that has been displayed reached the latest high around 1.09480.
The price movement then flattened at the end of the session until it resumed trading in the Asian session this morning (Thursday) around 1.09400.
The trend is considered to remain bullish with the price still moving above the Moving Average 50 (MA50) support line on the 1-hour time frame on the EUR/USD chart.
The price increase that is expected to continue is likely to go up to the 1.10000 level as well as record the latest high level again.
However, if the price plunges again, the 1.09000 zone will again be the focus to be tested and the price reaction around it will give an indication of further movement.
A further decline and a move below the MA50 line would be a bearish signal with an expected decline that could reach around 1.08000 again.
