The US dollar continued to strengthen until the New York session yesterday after the market digested the FOMC meeting results with interest rates remaining unchanged.
Market sentiment is also recovering with the development of trade negotiations between the United States (US) and Britain yielding positive results.
The market is now awaiting the development of negotiations with China on Saturday for tariff discussions between the two world's giant economies.
On the EUR/USD currency pair chart, the price is seen to have made a move out of the previous horizontal zone.
The price decline continued after the 1.13000 support zone was broken driven by the strengthening US dollar factor.
A bearish movement signal saw the price below the Moving Average 50 (MA50) resistance line on the 1-hour time frame on the chart.
Continuing trading until the Asian session this morning (Friday), the price has touched the target level at 1.12000.
Further declines are expected to continue to lower levels with the target shifting to around 1.11000.
However, if there is a rebound from the 1.12000 level, the price will return to the 1.13000 zone which could potentially become a resistance for the price.
If it breaks through that zone and also the MA50 barrier, there is potential for the price to move in a bullish trend again and head towards higher levels.
