During the presidential election voting process that took place in the United States (US) yesterday, the market witnessed the gloomy movement of the US dollar throughout the New York session.
The US dollar experienced a depreciation before there was a change in the direction of the price movement in the Asian session this morning (Wednesday) when the counting of votes began.
The US dollar strengthened significantly compared to the decline shown in the previous session as the election mood intensified with the current vote count in favor of Donald Trump.
If you look at the chart of the EUR/USD currency pair, the price is seen initially showing a rise to the latest 3-week high near 1.09400 at the end of the New York session.
However, the price changed direction at the beginning of the Asian session this morning with a sudden price plunge of more than 200 pips!
The price plunged back below the 1.09000 zone before easily breaking through the 1.08000 concentration level.
As of 12.00 noon, the price has reached the 1.07200 level, almost to the next concentration zone at 1.07000.
If the strengthening momentum of the US dollar is maintained, the price will continue the downward pattern below the 1.07000 zone to record the latest 5-month low.
However, if there is a price rebound, a break above the 1.08000 level again will expect the price to climb back towards 1.09000.
A clear direction of price movement has been difficult to determine for the last several sessions due to election speculations that continue to hover in the market.
