After the flat movement shown at the beginning of the week, the US dollar started to give a clearer direction in yesterday's trading Tuesday.
The strengthening of the US dollar returned when it managed to reach a 6-week high, embedding other major currencies in the market including the Euro.
European and United States (US) manufacturing and services PMI data will be watched today which will affect the Euro currency and the US dollar.
The results of the European central bank (ECB) policy meeting will be in focus on Thursday tomorrow, while investors will also examine US economic growth data for the fourth quarter of 2023.
If you look at the chart of the EUR/USD currency pair, the price showed a horizontal movement last Monday around the 1.09000 zone.
On Tuesday yesterday, prices rose in the Asian session reaching a height of 1.09150 before plunging in subsequent sessions.
A daily decline of around 90 pips was recorded with the price plunging in the New York session reaching the level of 1.08200 becoming the latest record low of 6 weeks.
Prices rebounded slightly at the end of the session at 1.08500 and prices slowed around that in early trading in the Asian session today (Wednesday).
Still moving below the 1-hour Moving Average 50 (MA50) barrier line on the EUR/USD chart as a bearish signal, the price is likely to continue its decline lower towards the target zone of 1.08000.
If it breaks even lower, the next target will move to 1.07000.
However, if the price manages to bounce back, the MA50 barrier will be tested and the price will have to break through the 1.09000 zone again to signal a trend change.
The increase that continues after that will only retarget to the 1.10000 resistance level that was tested in early January.
