The change in price direction occurred on Tuesday trading yesterday saw the US dollar recover from the decline at the beginning of the week.
Analysts do not see concrete factors supporting the strengthening of the US dollar but the speculation floating in the market regarding the setting of the Federal Reserve's (Fed) monetary policy.
The awaited indicator is the United States (US) inflation data that will be published on Thursday for the market to evaluate along with the NFP employment data that has been published.
The price chart of the EUR/USD currency pair showed a flat price movement, but the upward trend at the beginning of the week failed to continue.
The price that increased near the level of 1.09800 in the New York session last Monday was seen to fail to touch the concentration level of 1.10000.
The price showed a slow decline throughout Tuesday yesterday reaching the level of 1.09100 in the New York session.
The movement of the price that fell back below the Moving Average 50 (MA50) barrier in the 1-hour time frame on the EUR/USD chart again suggested a bearish trend at the end of 2023 and continued again.
The decline in price is seen to reach once again the 1.08800 zone that was tested in last Friday's trading when the reaction to the NFP data was published.
If the price continues to plunge significantly beyond the zone, the bearish movement displayed will lead to the target zone of 1.08800.
On the other hand, if the price manages to bounce back above the MA50 barrier, the upside is likely to continue to try to reach the 1.10000 level again.
After successfully breaching the resistance, then a higher increase can be expected for the price showing a bullish movement towards a new target at 1.11000.
