US President Donald Trump reiterated his threats against Federal Reserve (Fed) Chairman Jerome Powell earlier this week.
He claimed that Powell's decision to cut interest rates at the end of 2024 was politically motivated.
Trump wants the interest rate cut to be done sooner, and wants interest rates to be lowered again immediately.
The instability triggered by the threat pushed the US dollar to continue to move weak at the opening of trading on Monday.
Examining the price movement on the EUR/USD currency pair chart, the upward price pattern began at the opening of the Asian session on Monday after the price moved flat at the close of last week.
From a level around 1.14000, the price has surged above 1.15000 and reached a new high of 1.15700.
Reaching the latest 3-year high, the price began to retreat again in trading towards the New York session yesterday to slow down around the 1.15000 zone.
The price movement remained with a bullish signal, seeing the price still above the Moving Average 50 (MA50) support line on the 1-hour timeframe on the EUR/USD chart.
Trading that continued in the Asian session this morning (Tuesday) rose slowly from the 1.15000 zone with expectations of continuing yesterday's bullish movement pattern.
The target for further price increases is towards 1.16000 after surpassing the high reached yesterday.
However, if there is a further decline, the price will approach the 1.14000 zone which is seen as a support zone during price action.
And if it breaks lower, the signal for a price change makes investors ready for the upcoming downward pattern.
