The US dollar showed a recovery in performance in the New York session yesterday as US economic data came in with positive readings.
The ISM survey for the manufacturing sector in June showed a better increase in figures although it still remained below the 50-point mark.
Meanwhile, the focus component for the labor sector, namely the JOLTS data which measures the increase in US private employment in May, recorded 7.77 million, beating the forecast of 7.32 million.
The market will also watch the ADP data today and the NFP on Thursday which will also be a guide for the Federal Reserve (Fed) in setting monetary policy.
Examining the EUR/USD currency pair chart, the price is still seen to have recorded new highs in the increase that continued in the European session yesterday reaching around 1.18300.
The price was then pressured down in the following session as the US dollar was supported by the recovery in published data.
The price dropped to around 1.17600 before returning to near the 1.18000 level at the close of the New York session.
The price movement remained slow hovering around 1.18000 continuing the opening trade of the Asian session this morning (Wednesday) and still showing bullish signals as the price remained above the Moving Average 50 (MA50) support line on the 1-hour time frame of the chart.
For expectations of further increases above yesterday's level, the price will target around 1.19000 for a new 4-year high.
Conversely, if the price makes a decline from the 1.18000 level to below the MA50 line, be alert for early signals of a price trend change.
The initial decline is seen to approach the focus zone around 1.17000 with the price reaction to be watched for further direction.
