The strengthening of the US dollar did not last long when it moved weak again in the market at the end of the week.
In the Asian session yesterday (Wednesday), the US dollar strengthened significantly in response to the report of Trump's tariff restrictions by the United States (US) court following the previously published FOMC meeting minutes.
However, the strengthening of the US dollar stagnated in subsequent sessions with the focus temporarily shifting to the published US economic growth data.
The second reading showed a little better, but the figure still remained below the negative level that signals an economic contraction that risks a recession.
If we examine the price movement on the EUR/USD currency pair chart, a significant price drop occurred in the Asian session yesterday from the 1.13000 zone to almost touch 1.12000.
However, the increase occurred again in the European session and the surge continued in the New York session, passing the 1.13000 zone to a level near 1.14000.
The surge that also crossed the Moving Average 50 (MA50) resistance line on the 1-hour timeframe on the EUR/USD chart yesterday again signals a bearish movement for the price.
The price movement that continued trading in the Asian session this Friday morning appears to be slowly hovering below the 1.14000 zone.
If the rise continues, the 1.14000 resistance zone will try to be broken before the price records a new high in several weeks.
The target will shift to the 1.15000 level by displaying a clearer bullish pattern.
On the other hand, if the price retreats back down, the 1.13000 zone will be approached again and the price reaction will be observed for further direction.
If it plunges through it, the price could head back to the 1.12000 level which was almost reached in the Asian session yesterday, Thursday.
