The Euro currency fell to a fresh 11-week low against the US dollar as pressure mounted ahead of the decision of the European central bank's policy meeting today (Thursday).
The European Central Bank (ECB) is expected to lower interest rates by 25 basis points to 3.40%, after implementing a 60 basis point cut in September.
Meanwhile, the US dollar maintained a good trading performance when no other factors changed its price movement pattern with expectations still remaining for the Federal Reserve (Fed) to implement a smaller interest rate cut at the November meeting.
The difference in movement for the two currencies is assessed on the EUR/USD pair chart throughout the week.
The price movement remains below the Moving Average 50 (MA50) barrier line on the 1-hour time frame of the chart which indicates a bearish signal for the price.
After leveling off last Tuesday at the important 1.09000 zone, the decline continued yesterday until the price hit a new low around 1.08530 at the end of the New York session.
Prices were flat around that in the early trading of the Asian session this morning, with the tendency for further declines to continue.
The price is expected to hit another recent low with a target on the next concentration zone around 1.08000.
However if a surge occurs again past the 1.09000 zone, investors will be ready to see a change in price direction.
A rise above the MA50 barrier signals a trend change before the expected bullish return towards 1.10000 to test the resistance zone.
