The excellent performance of the Euro currency that has been displayed since the opening of the week began to be disrupted by the market reaction to the economic data published yesterday Thursday.
The German manufacturing and services PMI published did not show significant changes for the July reading, not impacting the movement of the US dollar.
However, the Euro slowly fell as investors were cautious ahead of the European Central Bank policy meeting.
The European Central Bank (ECB) met expectations by keeping interest rates unchanged at 2.15% with a follow-up statement by President Christine Lagarde that was cautious and did not provide a clear indication for further monetary policy.
Investors find it difficult to determine a clear direction for the Euro currency and also the US dollar for trading in the final sessions of this week, so they need to be more careful in controlling risk while the market is still in an uncertain atmosphere.
If you look at the EUR/USD currency pair chart, the upward pattern that has been displayed since the beginning of the week has been stagnated with a more flat movement on Thursday.
The price increase failed to reach the target of 1.18000 with the highest level only reached around 1.17890 which then showed early signs of a decline.
The price hovered slowly around 1.17500 at the opening of the Asian session this morning (Friday) and began to move below the Moving Average 50 (MA50) line on the 1-hour time frame on the chart.
The price pullback in the final sessions of this week is seen to be approaching the 1.17000 zone again and the extended decline will further explain the bearish trend of the price.
However, if the price manages to bounce back to make another increase, the resistance at 1.18000 is still the main target to be overcome.
If successful, the price will record an increase to the latest high for the trading period of 4 years.
