The US dollar again moved weakly in trading in the European session yesterday after the market digested the decision to cut interest rates by the Federal Reserve (Fed) in the early morning meeting.
Other major currencies, especially the Euro, took advantage of the situation to rise again to hover at 3-week highs.
Observed volatile price movement occurred on the EUR/USD currency pair chart with a price jump to the 1.11900 level when the reaction to the FOMC meeting results before the price plunged to the 1.11000 level.
In the Asian session on Thursday yesterday, the price continued to decline to around 1.10700 first before a surge was finally displayed later.
The price rebound above 1.11000 has pushed the climb to continue reaching highs near 1.11800, but has not succeeded in overcoming the highs during the FOMC.
Price pulled back to test the Moving Average 50 (MA50) support line on the 1-hour time frame on the EUR/USD chart before bouncing towards the end of the New York session.
The horizontal price movement was slow at the level of 1.11600 in the early trade of the Asian session this morning (Friday) with the expectation that the price increase is likely to continue.
A higher move will surely try to test the 1.12000 resistance zone which still remains a price barrier.
If the price successfully breaks higher, the latest high level will be recorded again with the target moving to the 1.12700-1.13000 zone.
However, at the end of the week, the price movement situation may change with activities such as profit taking that may occur.
The price can plunge and fall back to test the important zone of 1.11000 which is seen as support when making the price.
A significant break through the zone will trigger a bearish signal to expect the price decline to return to last week's support zone at 1.10000.
