The significant strengthening of the US dollar on Wednesday trading yesterday has changed the direction of movement on the main charts due to the reaction to the 2024 presidential election event in the United States (US).
The victory in favor of Donald Trump who defeated his challenger, Kamala Harris was seen to influence the initial strengthening of the US dollar.
However, after being significantly strong starting from the beginning of the Asian session and continuing into the European session, the momentum of the US dollar began to relax during trading in the New York session yesterday.
Even so, high pressure remains seen by the US dollar over other major currencies in the market.
Looking at the chart of the EUR/USD currency pair, the biggest daily plunge of the year has been displayed up to around 250 pips.
The situation indicates that the price change has occurred after the bullish pattern was displayed on the previous days trading.
Starting from the beginning of the Asian session at the height of 1.09370, the price has plunged through the important level of 1.08000 to reach the target zone at 1.07000 in the New York session yesterday.
However, the continuation of the price drop did not happen when it displayed a bounce from the support zone before hovering slowly around 1.07300 to continue trading in the Asian session this morning (Thursday).
Further declines are expected to continue, but investors will first watch the price to break through the 1.07000 support.
The decline will continue with the target moving to 1.06000 for the latest record low in 7 months.
Meanwhile, for the expectation of a price increase if it happens, the closest concentration level is at 1.08000 to be tested before continuing higher.
