The strengthening of the US dollar continued until the end of the week after investors examined the latest published data indicators.
After the consumer inflation data (CPI) of the United States (US) was published last Wednesday, investors' focus was on the producer inflation data (PPI) in the New York session yesterday.
However, the US dollar was seen to slightly relax its movement momentum at the beginning of the New York session before continuing to strengthen towards the end of the session.
The focus in the last session at the end of this week is on the US retail sales data that will be published for the October reading.
Looking at the price chart of the EUR/USD currency pair, a lower decline was displayed yesterday hitting the analyst target level at 1.05000, marking a recent 1-year low.
However, there was a price rebound as soon as it reached the support zone, seeing the price reach around 1.05800.
The move higher failed to continue as it stalled at the Moving Average 50 (MA50) barrier line on the 1-hour time frame on the EUR/USD chart before retreating back down in late New York trading.
Continuing the opening of the Asian session this morning (Friday), the price hovered slowly above the 1.05000 zone with the expectation that the bearish price trend will continue.
A further drop in price if it falls below 1.05000 will record a new low with the target moving to around 1.04000.
On the other hand, if the price shows a rebound above the MA50 barrier and the 1.06000 level, this will give an early signal for a change in the price trend.
The increase that continues after that will lead back to the previous concentration levels such as at 1.07000 or 1.08000.
