The US dollar continued its depreciation pattern on Tuesday trading yesterday as analysts had expected following the easing of monetary policy initiated by the Federal Reserve (Fed) at last week's meeting.
In addition, the published economic data of the United States (US) is increasing the pressure on the US dollar.
After a lackluster US PMI data reading for September, the US consumer confidence survey reported yesterday showed a weak figure.
The decline in the performance of the US dollar is seen to be benefiting most other major currencies in the market to strengthen their respective values.
Including the Euro, it can be observed the price movement on the chart of the EUR/USD currency pair which has returned to show a surge again.
At the beginning of the week, the price was pushed down to the 1.11000 zone first following the European PMI data which influenced the depreciation of the Euro.
However, with gloomy US economic data, prices have continued to rise on Tuesday yesterday until the trade that continues into the Asian session this morning (Wednesday).
The price advance has managed to surpass last week's levels, to record a fresh 4-week high.
Now the 1.12000 resistance zone is seen to be the focus of testing with the price reaction around it will be an indication of the direction of further movement.
If it breaks through, the price will record the latest high level with a target of 1.12700 to 1.13000.
However, if the resistance of 1.12000 fails to be passed, the price is likely to fall back to hover in the range of last week.
The price's nearest support remains at 1.11000 as tested in the early trade of the week.
