The US dollar re -strengthened towards this weekend's trade as investors assessed market sentiment which returned to risk after scrutinizing the release of economic sector data.
The manufacturing and services sectors in Europe recorded declining figures, indicating a contraction in economic activity to a 16 -month low.
While the same data reading in the United States (US), shows the manufacturing sector fell to a 2 -year low, while the services sector was a 5 -month low.
This situation continues to raise concerns over the risk of a recession while central banks are still struggling against peaking inflation.
The price movement on the chart of the EUR/USD currency pair has seen the price decline again in Thursday's trading yesterday testing once again the 1.05000 support zone on the RBS zone (resistance become support).
Still, the price managed to hold off from a lower decline of the zone to remain hovering above it until the New York market session ended.
A price movement below the Moving Average 50 (MA50) barrier level on the 1 -hour time frame can be an early signal for the price to continue the lower decline.
If the price manages to fall below the 1.05000 zone, the price will be driven to extend the decline towards the main support zone at 1.04000.
A lower decline beyond the zone will record the latest price lows for a 20 -year trading period.
On the other hand, if the price displays a surge again, the resistance that will be tested by the price is at the 1.06000 zone.
On Tuesday and last week as well, the price still has not managed to break the resistance of 1.06000 after the price increase reached that high.
If the price manages to get past it, the continued price increase for a clearer bullish movement will target the 1.07000 level or even higher to the 1.08000 high.
