Towards the end of the week, the market situation changed again, especially in the US dollar currency, which moved down again due to the reaction to the latest published economic data.
The second reading for the economic growth of the United States (US) in the first quarter of 2024 dropped to 1.3% (1.2% forecast) from the previous reading of 1.6%.
In addition, US jobless claims data for the previous week rose slightly while US home sales contract data for April fell worse than forecast figures.
Concerns over the risk-taking US economy put renewed pressure on the US dollar while giving other major currencies the edge to recover at the end of May.
The indicator that will be examined next is on the data of the consumer personal expenditure index (PCE) in the New York session later that night which is expected to have a big impact on the market movement.
Examining the chart of the EUR/USD currency pair, the price is seen to have bounced back after testing the RBS (resistance become support) zone of 1.08000.
The price that showed a fall to the zone then made an increase again to a level around 1.08400 in the New York session yesterday.
A slow price movement above the Moving Average 50 (MA50) line on the 1-hour time frame on the chart gives an early signal for a trend reversal.
If the price increase continues after this, the price is expected to try to reach the 1.09000 zone again to test the resistance.
Successfully breaking through it will help the price to record a new high with a moving target at 1.10000 as well.
However, if the price falls again, the RBS 1.08000 zone will be tested again and the reaction around it will be watched.
If the zone is no longer able to bounce back the rising price, a drop below it will be a bearish signal before the price continues its decline towards 1.07000.
