Tensions in the market have previously begun to ease as United States (US) President Donald Trump appears to be more ‘soft’ on previous issues.
After being heated with threats to fire Federal Reserve (Fed) Chairman Jerome Powell since last week, Trump yesterday stated that he has no intention of removing Powell, but wants Powell to be more active in lowering interest rates.
In addition, Trump also announced that negotiations with China are going well and announced that tariffs as high as 145% will not be imposed on the Great Wall country, but the tariff rate will not be zero.
The easing of market tensions began to have a positive impact on the US dollar to trade again in the New York session yesterday.
On the EUR/USD currency pair chart, prices began to retreat from the 3-year record high reached earlier in the week at 1.15700.
The price decline on Tuesday yesterday until continuing to the Asian session this Wednesday morning was recorded at around 200 pips almost reaching 1.13000.
However, the price was seen to bounce back quickly to the 1.14000 level before the price movement began to slow down.
A signal of a price trend change was observed when the price began to move below the Moving Average 50 (MA50) barrier line on the 1-hour time frame on the EUR/USD chart.
A bearish price movement pattern will be displayed if the price declines again and penetrates the 1.13000 support zone.
Next, the focus level at 1.12000 to 1.11000 will again be the target if the decline continues.
However, if the price is able to surge above the 1.14000 resistance zone, the high level at the beginning of the week is likely to be challenged again.
Next, the 1.16000 height will be the target for the price increase to record the latest 3-year high.
