Weak at the beginning of the week but the US dollar managed to show strengthening on Tuesday trading yesterday with several factors examined by analysts.
Among them, concerns still focused on the debt ceiling issue in the United States (US) give an advantage to the US dollar as a safe-haven currency.
Then, hawkish signals from statements by several Federal Reserve (Fed) Presidents who see that monetary policy tightening is still needed.
Also, US retail sales data published for April readings yesterday showed an increase again compared to the previous month, but slightly missed expectations.
The Euro currency tried to show strengthening against the US dollar in the European session, but lost again after the US dollar managed to get a strengthening pace again, and the ZEW survey data on European economic sentiment also showed declining numbers.
On the price chart of the EUR/USD currency pair, the price rose slightly but as soon as it touched the 1.09000 level, the price bounced back down.
Closing the trade at the end of the New York session, the price slowed down around 1.08600 and also moved below the barrier level of the Moving Average 50 (MA50) on the 1-hour time frame on the chart for a bearish signal for the price.
If the US dollar manages to maintain yesterday's momentum, further declines will be seen with the price target heading towards the 1.08000 level.
The latest 7-week low is about to be recorded and if the price breaks through lower, the expected price can reach around 1.07000.
However, if the price goes up again, the 1.09000 zone will continue to be tested, which will signal a trend change if broken.
Moving higher will see the price reach the previous concentration level at 1.10000.
