The US dollar continued to decline on Tuesday as the market atmosphere was considered risky with the implementation of tariffs resumed in early March.
Mexico and Canada tariffs began on Tuesday while China reportedly announced an additional 15% tariff on US (US) imports.
The Euro currency has been strong since the opening of the week with the support of a 500 billion euro fund announced by the German Conservatives and Social Democrats to increase defense spending.
The Euro jumped to a 3-month high against the US dollar after the strong movement.
Observed on the EUR/USD currency pair chart, the price had started an upward trend at the beginning of the week from the 1.04000 level.
On Tuesday, the price continued to rise higher, surpassing the 1.05000 level and at the end of the New York session, the target level of 1.06000 was successfully reached.
The price moving above the Moving Average 50 (MA50) support line on the 1-hour chart remains a signal for the bullish price movement to continue.
Recording a fresh 3-month high, the price hovered slowly in the early Asian session this morning (Wednesday) above the 1.06000 zone.
A further increase if continued is seen to target up to the 1.07000 level.
The price is set to record a fresh 13-week high while testing the resistance in the November and December trading.
However, investors are wary of the possibility that the Euro could weaken ahead of the European Central Bank (ECB) policy meeting on Thursday which is expected to cut interest rates.
If the price retreats back below 1.06000, the downward pattern can be expected to approach around the important zone at 1.05000.
Continuing the decline lower, the price could re-reach the support level from earlier in the week before the rise began, which is at 1.04000.
