USD Weak, Prices Up! Retracement On EUR/USD Chart?


 The US dollar again displayed a depreciation on Thursday's trade yesterday following the publication of the United States (US) unemployment benefit claims data which was the focus of the New York session.

The data reading came in slightly higher than forecasts showing increased claims in the previous week.

This situation slightly eased expectations for a 50 basis point interest rate hike by the Federal Reserve (Fed) after Chairman Jerome Powell had signaled a hawkish tone.

Analysts assess this as just a temporary market reaction while waiting for the main focus in the New York session tonight, which is the US NFP employment data report.

The price movement was vigorous again yesterday compared to being flat last Wednesday.

On the price chart of the EUR/USD currency pair saw a re-increase in price after a significant plunge during the reaction to Powell's statement during the day.

The price made an increase again from the previous half-dive towards the level of 1.06000 which continued to continue in the Asian session this morning (Friday).

The price movement back above the Moving Average 50 (MA50) support level on the 1-hour time frame on the EUR/USD chart is an early signal for a possible trend change.

If the increase succeeds in continuing beyond the 1.06000 level, the price is seen to head towards 1.07000 to test the resistance zone that has not yet been breached for several weeks.

However, if the price starts to plunge again below the MA50 support level, the decline will continue with the target towards the 1.05000 support zone.

The price will also record the latest 14-week low by continuing the bearish trend.