The US dollar rebounded slowly this week to reduce the severe losses it had suffered over the past week.
The focus is on Federal Reserve (Fed) Chairman Jerome Powell's speech in front of Congress yesterday which also has an impact on the US dollar.
Indications regarding the timing of interest rate cuts by the Fed have yet to appear, Powell reiterated to wait for the latest data that came out yesterday to give enough confidence to move to policy easing.
Thus, with the expectation that tight policy and high interest rates will continue to be maintained, the US dollar moved steadily towards the end of the New York session.
Looking at the price movement on the chart of the EUR/USD currency pair, the high tested earlier in the week around 1.08400 is the level reached at the end of last week.
A rise higher than that did not happen when the price started to slowly lower as shown in the trading pattern throughout yesterday's Tuesday.
An early signal for a bearish price movement is observed when the price starts to move below the Moving Average 50 (MA50) barrier line on the 1-hour time frame on the EUR/USD chart.
Although the pace of price decline is slow, it is seen to be getting closer to the concentration zone of 1.08000 which is expected to invite an attractive price reaction.
If the breakout price is lower down, it will be a clear bearish signal and investors will be ready to face a more severe fall.
Once the bearish pattern begins, the price is seen to retarget around 1.07000.
However, if the price continues to hold above the 1.08000 zone, investors will look for signs of a rebound.
Breaking through the MA50 barrier will push the price to challenge the high level earlier in the week before recording the latest high.
The next target for the price is towards the zone around 1.09000.
