The US dollar moved gloomy in trading yesterday Tuesday, seeing the recovery pattern that has continued until the opening of the week was slightly delayed.
The United States (US) economic data published in the New York session yesterday also came with lackluster readings involving consumer confidence surveys and new home sales data.
The Euro failed to take advantage of the situation to strengthen again in the market following the dovish signals seen in the monetary policy discussion by the European Central Bank (ECB).
ECB Governing Council Member Francois Villeroy de Galhau said that there is still room to continue cutting interest rates with the 2.5% deposit rate being lowered to 2.0% by the end of the summer.
It is observed that the price movement pattern on the EUR/USD currency pair chart is in a slow range but still remains hovering around the 1.08000 zone.
The daily low is around 1.07800 with the price rising in the European session yesterday reaching 1.08300 before the price fell back to 1.08000 at the end of the New York session.
For 2 consecutive days, the price was seen testing the Moving Average 50 (MA50) resistance line but failed to continue its rise, indicating that the price trend is still bearish.
Hovering below the 1.08000 level at the opening of the Asian session this morning (Wednesday), investors still maintain the tendency for the price to move lower while waiting for clearer market indicators.
The price decline, if continued, is expected to head towards around 1.07000 to test the nearest focus zone.
On the other hand, if the price manages to jump strongly from the 1.08000 zone and surpass the MA50 barrier, the potential for the price to continue the previous bullish pattern is high.
The 1.09000 zone will be the focus to be tested before the next increase will target 1.10000.
