In contrast to the flat movement throughout the past week, trading at the opening of the early week yesterday showed a more pronounced pattern.
The US dollar began to strengthen at the opening of the New York session yesterday after a lackluster performance before.
Market analysts had expected this situation to occur as the US dollar is expected to resume its strengthening following the signal from the recent December FOMC meeting.
However, investors should remain vigilant with the warning of volatile market movements for the last trading day of 2024.
Examining the movement on the EUR/USD currency pair chart, the price began to rise slightly in the European session yesterday to a height approaching the 1.04600 level.
However, at the beginning of the New York session, the price began to plummet until it broke through the 1.04000 level and reached a daily low of around 1.03700.
The bearish signal was observed again when the price started to move back below the Moving Average 50 (MA50) barrier line on the 1-hour time frame of the EUR/USD chart.
Towards the end of the New York session, the price slowly rose to the 1.04000 zone again and remained hovering around it in the early Asian session this morning (Tuesday).
If the increase manages to break through the MA50 barrier again, the price can be expected to make another increase to overcome yesterday's high.
Next, the continued increase will head towards the previous week's focus zone of around 1.05000.
On the other hand, if the price is pushed back below the 1.04000 zone, a lower decline is at risk of occurring and surpassing the level reached in the previous New York session.
Further decline in price will target the 1.03000 zone which will record a new low in 2 years.
