The US dollar was seen still maintaining its strength until Thursday’s trading yesterday while investors remained optimistic in anticipation of an aggressive interest rate hike by the Federal Reserve (Fed) at next week’s FOMC meeting.
But the strengthening momentum of the US dollar was slightly hampered by the release of US economic growth data yesterday with a lower -than -expected reading.
Thus, it can be observed that the continued bearish movement on the chart of the EUR/USD currency pair yesterday lost some momentum.
However, the price still managed to record the latest low reaching around 1.04710 before the price flattened until the end of the New York session continuing at the beginning of the Asian session this morning (Friday) around 1.05000.
The continued decline will continue to hit the latest 5 -year lows on the EUR/USD chart.
The price remains displaying a signal for a bearish trend movement where the price moves below the Moving Average 50 (MA50) barrier level on the 1 -hour time frame throughout the week.
The lower decline if extended at the close of trading this week is expected to head to the focus zone at 1.04000.
The zone is a price support zone that was reached in December 2016 trading where investors will assess the price reaction in the zone.
But beware of any possibility on weekend trading that could make the price rise again.
If it passes the MA50 barrier, investors do not push as an early signal for a reversal of the bullish trend.
The target level for the rise that is seen to be tested is at 1.06000 before heading to the 1.07000 level.
The rise that is still successful will test the SBR zone (support become resistance) at 1.08000.
