The US dollar in trade at the end of the week showed a gloomy performance after the end of the FOMC meeting early Thursday morning yesterday.
The US dollar seems to have failed to strengthen even though the Federal Reserve (Fed) is seen to continue to maintain a tight policy while also announcing quantitative tightening measures.
However, market analysts expect that the US dollar will strengthen again in the near term following the hawkish signal after the FOMC meeting yesterday.
Investors are wary of trade at the end of the week with focus on the US NFP jobs report which will be the Fed's next clue.
Examining the price movement on the chart of the EUR/USD currency pair, the price surged above the 1.07000 level during the initial reaction to the FOMC meeting.
However, in the European session yesterday, there was a drop displayed but the price bounced back above the 1.07000 level in the next session.
The bounce occurred after the price tested the 1-hour Moving Average 50 (MA50) support line on the EUR/USD chart around 1.06800.
The price movement still shows bullish signals and the slow rise in prices continued in the continued trading in the Asian session this Friday morning.
The upside will try to overcome last week's high around 1.07500 before the rally continues towards the next target at 1.08000.
But be alert if there is any indication that the US dollar will strengthen again and will sink the price down.
A price drop below the 1.07000 level and crossing the MA50 support line will be an early signal of a bearish trend change.
The decline will test the weekly low around 1.06500 before an extended decline will target the previous support zone at 1.06000.
