The pattern of the US dollar's currency movement changed significantly on Thursday and today (Friday) influenced by data and hot issues in the market.
Since Wednesday until yesterday's New York session, the US dollar moved weakly as US inflation data recorded a slow increase.
In addition, investors are wary of the news that President Donald Trump sent an official letter to trading partners to refine the tariff agreement.
The situation changed in the Asian session this morning, witnessing a significant strengthening of the US dollar with reports of Israel's attack on Iran, becoming the starting point of the war between the two countries.
The EUR/USD currency pair chart has shown an increase until Thursday yesterday, before the price direction changed in the Asian session this morning.
The price increase reached a height of 1.16300 in the European session yesterday, recording a new high for 7 weeks before retreating again in the New York session below the 1.16000 zone.
In the Asian session this morning, the price managed to rise slowly to test 1.16000 before the reaction to the war situation saw the price plunge around 60-70 pips.
The price decline is heading back to the 1.15000 level while the Moving Average 50 (MA50) support line on the 1-hour timeframe on the EUR/USD chart will be watched for testing.
With the expectation that the war situation is still hot and giving the US dollar an advantage, the price is expected to be pushed lower below the 1.15000 zone.
Continuing the decline, the 1.14000 zone will be approached again, which was the focus of the price during the horizontal movement at the beginning of the week.
On the other hand, if the situation changes again at the end of this week, it is not impossible for the price to bounce back and make an increase to test the 1.16000 resistance zone again.
Continuing the increase higher, the price will record new heights with the target to reach around 1.17000.
