Reminder to break through $1.0700, EUR/USD apparently falls back!


 The US dollar managed to show a re-strengthening on Thursday trading yesterday not continuing the previous day's depreciation pattern.

Previously, the market sentiment that was restored by the release of excellent Chinese economic sector data has had the effect of a depreciation of the US dollar as a safe-haven currency.

However, it is likely that the market will refocus on central bank policy factors where the Federal Reserve (Fed) is still expected to maintain their monetary policy tightening measures.

Even so, investors need to be wary of trading in the final sessions which often display opposite movements due to profit taking activities at the end of the week.

The price chart of the EUR/USD pair last Wednesday surged almost to the 1.07000 level, but showed a further decline in price to below the 1.06000 level.

The price dipped to around 1.05800 before rebounding slightly to close the New York session at around 1.06000.

The price movement that began to be below the Moving Average 50 (MA50) barrier on the 1-hour time frame on the EUR/USD chart has again suggested a bearish movement for the price.

The price is likely to move lower towards the support level at the beginning of the week 1.05300 or to the main support at 1.05000.

The drop lower will continue to record the latest 8-week price low.

However, if the price manages to make an increase in these final sessions, breaking the MA50 barrier will push the price back to the 1.07000 resistance zone.

Breaking that resistance would expect a higher rise to the 1.08000 level which was also the price resistance in the previous trade.