After a sluggish movement, the USD returned to a strengthening track amid risky market sentiment as well as the release of positive US unemployment claims data in the New York session yesterday.
In addition, US treasury yields continued to hit the most recent 20 -week high of 1.70% also adding support to the USD to strengthen.
Investors are also waiting for the release of European PMI economic data which will be published in the European session to assess the movement of the Euro currency which is seen to be stable at the moment.
Looking at the price chart of the EUR/USD pair, the price movement continued the downtrend from the beginning of the European session (Thursday) until the end of this week's trading session.
But the price still seems to be moving horizontally which remains traded between the 2 -week highs around 1.16700 and above the RBS (resistance become support) zone at 1.16000.
The downtrend has also resulted in a decline of over 40 pips as well as continuing to move below the Moving Average 50 (MA50) barrier level on the 1 -hour time frame for the initial signal of a bearish trend.
If the price movement on the EUR/USD chart remains subdued, the resistance level of 1.16000 is seen to be once again the main level of focus to await further movement reactions.
If the price continues to break that level it is likely that investors will need to be prepared for the price to retest the 2021 low of 1.53000 which has supported the price spike in the past.
The probability of a drastic movement to maintain the uptrend pattern will see the price return to the weekly high of 1.16700 before expectations can rise further.
A higher price increase is expected to test the SBR (support become resistance) zone of 1.17000 after the price showed a plunge below that level at the end of September.
