The US dollar moved weak again on Tuesday trading yesterday giving room for the Euro currency to breathe again after resisting the urge to strengthen the US dollar since the end of last week.
The euro managed to rise against the US dollar yesterday even as German economic survey data published gloomy readings.
The market sentiment that was restored by China's economic growth data in the Asian session yesterday had a weakening effect on the US dollar as a safe-haven currency.
The price movement on the chart of the EUR/USD currency pair has returned to show a bullish pattern again, possibly ending the bearish pattern at the beginning of the week.
After reaching the 1.09000 level on Monday, the price managed to rise again yesterday reaching a height of around 1.09800 before slowing around that area when ending the trading session in New York.
The Asian session this morning (Wednesday) saw the price still moving slowly, but the price which has been back above the support level of the Moving Average 50 (MA50) on the 1-hour time frame on the EUR/USD chart gives an early signal for the movement to turn bullish.
A rally is needed to break above the 1.10000 level before investors can expect further gains to continue.
Last week's highs around 1.10700 will be challenged and if successful, the price will continue its rise to record a recent 1-year high with the next target at 1.12000.
On the other hand if the price resumes the plunge at the beginning of the week, the 1.09000 zone is likely to be broken for the price to drop lower towards the support zone at 1.08000.
