Despite Gloomy Euro, EUR/USD Hits New 9-Week High!

<p>&nbsp;The US dollar continued to display a gloomy performance on the second trading day of the week when it was still moving lower in the New York session yesterday.</p><p><br /></p><p>Investors are still cautiously awaiting the release of inflation data from the United States (US) today in addition to expectations for the tightening phase of monetary policy by the Federal Reserve (Fed) which is nearing its end, being the factor behind the weakening of the US dollar at the moment.</p><p><br /></p><p>The Euro currency failed to take advantage of the opportunity to extend its appreciation to higher levels after being affected by the German economic ZEW survey data which declined for July.</p><p><br /></p><p>It can be observed on the chart of the EUR/USD currency pair, the price initially managed to make an early rise in the Asian session yesterday to the latest 9-week high around 1.10250.</p><p><br /></p><p>However, following the decline of the Euro in the European session, the price retreated back below the 1.10000 level and reached around 1.09800.</p><p><br /></p><p>The support level of the Moving Average 50 (MA50) on the 1-hour time frame on the EUR/USD chart was tested but failed to be breached before the price rebounded to close the end of the New York session trading above the 1.10000 level again.</p><p><br /></p><p><br /></p><p>Resuming trading in the Asian session this morning (Wednesday), prices rose again and managed to slightly overcome the highs reached yesterday and have the potential to record new highs again while the US dollar continues to experience depreciation.</p><p><br /></p><p>The target for the continued increase is to test the 1.10700 zone and if it continues to pass to a higher level, the target will move up to the height of 1.12000.</p><p><br /></p><p>Meanwhile, if the price reverses direction showing a significant decline past 1.10000 and MA50 support, investors will judge as a bearish trend change has begun.</p><p><br /></p><p>The decline is expected to test the 1.09000 zone before extending the decline to the next concentration zone at 1.08000.</p>