EUR/USD – Bearish Pattern Expected to Push Price Towards $1.0700


 Concerns surrounding the ongoing debt ceiling issue in the United States (US) still make investors choose safe investments.

Thus, the US dollar as one of the focus safe-haven currencies still manages to maintain its strengthening at the 2-month high level even though the market is in an uncertain state.

The minutes of the FOMC meeting were published early this morning with some members seeing interest rate increases still need to continue, while others are of the view that there is no need to raise rates after this.

The critical data that will be paid attention to after this is the economic growth for the second reading for the first quarter of 2023 this evening in addition to the personal expenditure index of US consumers that will be published on Friday in the last session of the week.

With the US dollar currency still moving well, the Euro continues to receive pressure as well as the business climate data in Germany ifo survey was published with declining figures yesterday.

Therefore, it can be observed that the price movement on the chart of the EUR/USD currency pair still remains hovering below the 1.08000 zone until yesterday.

There is a spike that can be seen touching 1.08000 but it bounces back down again and also fails to cross the Moving Average 50 (MA50) barrier on the 1-hour time frame on the EUR/USD chart.

Slow price action resumed trading in the Asian session this morning (Thursday) but has slightly surpassed last week's low of 1.07600.

As previously expected, the price is seen to go towards the 1.07000 level which is likely to be the latest support level for the price.

In fact, the price can drop lower if the US dollar succeeds in strengthening its position in the market and the price will record the latest 9-week low.

But investors will be careful if there is a trend change signal with a price spike that can be displayed.

A rise above the MA50 barrier will test the 1.08000 zone first before the move higher will continue.

The next target is to reach back to the previous concentration zone of 1.09000 before moving to the height of 1.10000.