EUR/USD Sinks to New Lows for January!

<p>&nbsp;The US dollar showed a stronger strengthening on Tuesday yesterday after investors continued to assess the Federal Reserve's (Fed) monetary policy projections for 2024.</p><p><br /></p><p>A speech delivered by Fed governor Christopher Waller signaled that the central bank needs to remain vigilant and monetary policy easing may be delayed for now.</p><p><br /></p><p>A decrease in fixed interest rates is expected to occur but may not be as fast as previously predicted.</p><p><br /></p><p>With the strengthening situation of the US dollar, most other major currencies in the market including the Euro experienced downward pressure.</p><p><br /></p><p>Although German Zew survey data published yesterday was positive, it still failed to support the strengthening of the Euro against the US dollar.</p><p><br /></p><p>It can be observed on the chart of the EUR/USD currency pair, the price has displayed a bearish pattern with a decline starting from the Asian session until the end of the New York session.</p><p><br /></p><p>The latest low was successfully recorded when the drop has reached near the 1.08600 level before the price movement is flat in the Asian session this morning (Wednesday) around 1.08700.</p><p><br /></p><p><br /></p><p>With the price moving below the Moving Average 50 (MA50) barrier on the 1-hour time frame on the chart, further declines are expected to continue.</p><p><br /></p><p>The next target is for the price to reach the support zone at 1.08000 which will record the latest 5-week low.</p><p><br /></p><p>However, if the price shows a rebound, the MA50 barrier will be tested and if broken will signal a change in the trend for the price.</p><p><br /></p><p>The increase will continue to test the resistance level at 1.10000 which was immune from being broken during the previous week's attempts.</p>