A bearish pattern is displayed on the chart of the EUR/USD currency pair for two consecutive days when there is a change in the movement of the US dollar from the beginning of the week.
Since last Tuesday, the US dollar began to recover and the strengthening of the value continued on Wednesday yesterday supported by the economic data of the United States (US) published.
US unemployment benefits claims data and consumer confidence survey showed positive readings.
But investors still remain cautious and assess whether the US dollar has begun to regain its strengthening rhythm or simply a price correction in the market.
European manufacturing and services PMI data will be watched shortly while the same data for the US will be published on Friday, as US markets are closed today for Thanksgiving Day.
If observed on the EUR/USD chart, the price has recorded the latest 3-month high around 1.09600, but the price has retreated back down to reach the level of 1.08530 in the New York session yesterday.
The price drop that is now moving below the Moving Average 50 (MA50) barrier line on the 1-hour time frame on the chart gives an early signal for a trend change to occur.
If the bearish pattern continues, the price will aim to reach the 1.08000 level and the price reaction around that will be watched for indications of further movement.
Falling lower will expect the bearish movement to continue as the price goes towards the concentration level of 1.07000.
However, if the price bounces back to resume the previous bullish movement, the price increase will re-challenge the high reached last Tuesday after breaking through the MA50 barrier.
The latest target for the continued higher move is to test the resistance at 1.10000.
