Slow price action on major charts shows the market is on guard as global tariff developments remain in focus.
Donald Trump's tariff moratorium has been extended to August 1, giving some extra time for other countries to try to reach an agreement on tariff negotiations with the United States (US).
US unemployment claims data released in the New York session yesterday recorded a decline in the previous week's reading, supporting the US dollar with positive signals from the US labor sector.
The US dollar extended its strengthening from the European session until early in the New York session, but moved weaker again at the close of the session.
The movement pattern on the EUR/USD currency pair chart yesterday can be observed with a decline to a new low this week.
After several days of holding above 1.17000, the price finally fell below the support zone with the daily low recorded at around 1.16600.
The price rebounded slowly at the close of the New York session approaching 1.17000 again.
The price movement remained below the Moving Average 50 (MA50) line on the 1-hour time frame of the EUR/USD chart, indicating a bearish signal, and a resumption of decline was displayed in the Asian session this morning (Friday).
The price is expected to extend the decline lower with the target to head towards the 1.16000 focus zone to record a new 2-week low.
On the other hand, if the price makes a strong surge above the 1.17000 zone and breaks through the MA50 barrier, a signal of a bullish trend change in the price will be observed.
The price resumption will target the resistance zone at 1.18000 which was tested in last week's trading.
