USD Reverses, EUR/USD 'Weak' Below $1.1000 Level


 Price movements on the EUR/USD currency pair chart were flat on Wednesday yesterday, missing expectations for continued gains.

If last Tuesday the price showed an increase towards the 1.10000 zone, the price is still not able to touch it.

This is due to the recovery factor of the US dollar yesterday when the economic data of the United States (US) was also published with good readings.

US consumer confidence data for the November survey recorded better-than-expected figures as well as an increase in the rate of home sales in the US.

Thus, the US dollar, which moved weakly before, has shown a strengthening yesterday while some more focus data will be published until the end of the week.

Continuing trading in the Asian session this morning (Thursday), the price is seen to have moved back below the barrier line of the Moving Average 50 (MA50) on the 1-hour time frame on the EUR/USD chart, triggering again a signal for a bearish movement for the price.

If the US data after this continues to be published positively supporting the US dollar, the price will be pressured to fall below the 1.09000 level.

Then the price drop will retarget the 1.08000 level which was the focus zone in the previous week.

In a different situation if a surge occurs, a re-crossing of the MA50 barrier line will expect the price to test the important resistance zone at 1.10000.

If the price finally succeeds in breaking through, the latest 4-month high level will be recorded with the next target seen at around 1.10600 to 1.11000.

The final reading for third quarter US economic growth will be scrutinized by investors in the New York session later tonight which is expected to influence the direction of further price movements.