The change in price direction can be observed on the chart of the EUR/USD currency pair towards the end of the week with the Euro showing a better performance over the US dollar which is 'calming down'.
Analysts see the profit-taking factor against the US dollar occurring after the strengthening trend displayed since last week following the hawkish signal by the Federal Reserve (Fed) to continue raising interest rates up to 4.6% in 2023.
However, analysts do not rule out expectations for a trend change situation again due to the potential for the US dollar to strengthen again, likely to continue trading in the new month.
The Euro currency is supported by indications from the European Central Bank (ECB) to raise rates several more times after this meeting and an expected increase of 75 basis points is an option at the October meeting.
However, investors should be wary of the potential for the Euro to weaken again in the market following the announcement of a €200 billion economic stimulus package in Germany.
On the EUR/USD chart, the price that has jumped from the support zone of 0.95500 on Wednesday continued to rise higher on Thursday yesterday with the increase reaching 300 pips.
In the Asian session yesterday, there was a price drop, but failed to pass the support level of the Moving Average 50 (MA50) in the 1-hour time frame on the chart as a signal for bullish movement for the price.
The rise then continued until the end of the New York session until it reached the height of 0.98000.
The price movement continued in the Asian session this morning (Friday) slowed down around that with the expectation of a potential increase to continue further based on the pattern of price movement in the previous sessions.
If the increase continues, the price is seen to test the 0.98800 level before extending the increase to the parity zone of 1.0000 which was previously an important focus of the price.
However, if the bullish pattern fails to be maintained, the price drop that can happen again will stop at around 0.97000.
The further decline in prices will continue towards the 0.95500 support zone which is the lowest price reached in 20 years.
