Volatile price movements were seen in yesterday's Wednesday trade with the US dollar weak against several currencies, however, also strong against several other currencies.
Against the Euro, the US dollar moved weak to give some room for the European currency to rise after being pushed down earlier in the week.
However, investors still find it difficult to determine the clear direction of price movement towards the end of the week.
Examining the price chart of the EUR/USD currency pair yesterday, the price initially showed a decline in the Asian session from the 1.07000 level which was a resistance for the previous price.
The decline reached around 1.06600 before rebounding in the New York session following the decline of the US dollar which has boosted prices higher.
The increase is seen to have crossed the resistance level at 1.07000 and also penetrated the barrier line of the Moving Average 50 (MA50) on the 1-hour time frame on the EUR/USD chart.
This gives an early signal for a trend change that could happen for a bullish move for the price hereafter.
The horizontal price movement above the 1.07000 zone towards the close of trading in the New York session until it continues into the Asian session this morning (Thursday).
If the rising pattern continues, the high level reached at the beginning of the week around 1.07500 will be the target to be challenged again.
If it succeeds in overcoming it, the price will continue to rise towards around 1.08000 to record a new high level.
On the other hand, if the price plunges again below the 1.07000 zone, the price could possibly drop lower than the level reached yesterday.
Next, the decline will continue towards the focus zone at 1.05000 with a clearer bearish trend.
