Market sentiment over the weekend was assessed as somewhat risky after data on China’s economic growth as the world’s second -largest economy published yesterday recorded a decline.
The US dollar recovered slightly in Thursday’s trading after a depreciation suffered following a dovish -toned statement by the Chairman of the Federal Reserve (Fed) signaling for the central bank to maintain a loose policy for a longer period.
Also supporting the recovery of the US dollar yesterday when the published US unemployment benefit claims data declined despite not reaching the expected target figures.
Investors remain cautious as they expect the US dollar to return to a weak move in the market likely to continue until next week.
If we look at the price movement on the chart of the EUR/USD currency pair, the price that had made a rise yesterday reached the level of 1.18500 again falling again touching the level of 1.18000 at the support zone.
The price movement is then seen moving slowly below the Moving Average 50 (MA50) barrier level on the 1 hour time frame on the EUR/USD chart giving a bearish signal again.
Continuing the Asian session on Friday morning, the price is flat and slow above the 1.18000 level and the price reaction on the support zone will be evaluated by investors.
If the zone is seen to be able to support the price increase as in the situation last week, the SBR (support become resistance) zone at 1.19000 remains the target level of price focus.
A higher rise beyond the zone will push higher expectations to the 1.20000 level on a clearer bullish trend movement.
However, if the price plunges lower below the support zone of 1.18000-1.17800, the decline is expected to head to the next support zone around 1.17200-1.17000.
For the movement of the US dollar over the weekend, the US retail sales data to be published during the New York session will be the focus of investors.
