Investor confusion and fear caused by the news of President Donald Trump signing an executive order imposing 245% tariffs on goods imported from China to the United States (US) continues to have a negative impact on the market.
Despite being clarified again by the White House, investors still expect continued uncertainty with the tariff war between the world's two largest economies showing no signs of abating.
Thus, the US dollar remains in a gloomy performance heading into the end of this week despite US retail sales data published in the New York session yesterday coming in with a positive reading for March.
The euro looks set to rise against the US dollar, but European investors are now awaiting the outcome of the European Central Bank (ECB) policy meeting today with expectations of a 25 basis point interest rate cut.
Examining the price movement on the EUR/USD currency pair chart, the bullish pattern was re-displayed yesterday on Wednesday.
After testing the 1.13000 zone, the price made a rebound and reached the 1.14000 level at the end of the New York session.
The price movement that returned to the support line of the Moving Average 50 (MA50) on the 1-hour time frame on the chart signaled a change in the bullish pattern again.
However, the price was seen to slightly retreat from the 1.14000 level in early trading in the Asian session this morning.
If the price manages to resume the rise and overcome the resistance at the 1.14000 zone, last week's high reached at 1.14700 will be overcome.
The price will then record a new high towards a new target at around 1.15000.
Meanwhile, for the expectation of a price decline, the 1.13000 zone will be tested as a support during the price action.
For further declines, the price can return to the focus levels around 1.12000 and then to the focus zone of 1.11000.
