The currency market still does not show a clear directional movement pattern due to investor caution over the new US administration policies under President Donald Trump.
The US dollar showed changes in its value trading in several different sessions.
It was strong for a while in the early Asian session yesterday Tuesday, but weakened again in the trading following the New York session.
Examining the EUR/USD currency pair chart, the price fell below the 1.04000 zone in the Asian session yesterday reaching around 1.30500.
Remaining above the Moving Average 50 (MA50) support line on the 1-hour time frame on the chart provides a bullish signal for the price.
The price has rebounded to break through the 1.04000 level in the New York session and returned to its previous high of 1.04300.
The price movement that continued trading in the Asian session this morning (Wednesday) is seen to remain slow hovering above the 1.04000 zone with expectations of higher increases to continue.
Exceeding the previous high, the price will target 1.05000 to record a new 5-week high.
On the other hand, if the price plunges below 1.04000, the price is likely to head back to the focus zone at the end of last week at 1.03000.
