The market atmosphere remains risky, the direction of price movements is confused, investors remain cautious.
The Iran-Israel war conflict is still in the spotlight with the intervention of the United States (US) seen to be worsening the situation.
President Donald Trump did not give a clear answer when asked whether the United States would join Israel in attacking Iran after their aircraft were moved to the battlefield.
The US dollar was seen not to continue strengthening further but instead moved weakly in the New York session yesterday and continued into the Asian session this Friday morning.
Thus, a change in price direction can be observed on the EUR/USD currency pair chart when the price began to show a rebound.
The previous price decline was limited to the 1.14500 level before moving horizontally until the rebound occurred at the close of the New York session nearing the 1.15000 level.
The bullish pattern continued at the opening of the Asian session this morning, surpassing the 1.15000 level and also showing an early signal for a trend change with price movement above the Moving Average 50 (MA50) line on the 1-hour time frame on the chart.
If the US dollar weakens further, prices could continue to rise higher in these final sessions with the target of retesting the 1.16000 resistance zone.
The zone was tested earlier this week and last week, but remained blocking higher gains from occurring.
Meanwhile, for a downward price movement below 1.15000, we would expect the previous bearish pattern to resume.
Continuing the decline lower, the 1.14000 zone will be the focus again like in early June.
