The US dollar is showing signs of weakness as it approaches the end of the week trading on concerns over the forecast of a gloomy US NFP jobs data report for May.
Before that, the focus will first be on the ADP employment data which measures the private sector in the US, the US jobless benefit claims as well as the ISM survey data of the manufacturing sector which will be published tonight.
Assessing the central bank's fundamental factors, some Federal Reserve (Fed) officials seem to agree that interest rate hikes should be halted for the time being and need to assess the impact on the current economy.
However, the Euro failed to capitalize on the opportunity for the US dollar to weaken when the currency fell to an 11-week low against the US dollar yesterday.
Examining the price chart of the EUR/USD currency pair on Wednesday yesterday, the price has started to decline in the Asian session to around 1.06600 before bouncing briefly at the 1.07000 level.
Testing that level and not breaking the Moving Average 50 (MA50) barrier on the 1-hour time frame on the EUR/USD chart prompted a continuation of the decline in the following session.
Recent lows were reached around 1.06350 before prices rebounded to close the New York session close below the 1.07000 level again.
With the bearish pattern displayed, the price will continue to decline lower towards the end of this week's trading with a target of 1.06000.
However, if the US dollar weakens more significantly, the price could rise again above 1.07000 and break through the MA50 barrier.
After evaluating the trend change signal, investors will be ready to witness a price increase again towards the 1.08000 level before continuing the climb to the 1.09000 concentration zone.
