There was a difference in reaction between the two European currencies the Euro and the Pound yesterday after the release of manufacturing and services PMI data in Germany and the UK.
The overall reading of the data recorded a slightly contractionary figure although still at a stable level.
But the Euro managed to maintain its strengthening momentum earlier in the week against the declining Pound after the release of the data.
This is because the Euro received a positive injection from members of the European central bank (ECB) who gave a hint for a rate hike of 50 basis points ahead of the policy meeting in early June.
Meanwhile, the US dollar remained weak despite a risky environment, but it is expected to start heading towards recovery.
The US economic sector PMI data also recorded a less encouraging reading and continued to fail to restore the performance of the US dollar.
On the price chart of the EUR/USD pair, the price is seen maintaining the bullish pattern and continues to record the latest highs.
As expected, the price continuing to rise has passed the resistance level at 1.07000 yesterday with the latest high reached almost at the 1.07500 level.
Trading resumed in the Asian session on Wednesday morning showed the price making a slight decline at the beginning of the session, but investors still expect the price to continue to rise even higher.
For the next upside target is heading to the 1.0800 focus zone where it becomes the price support zone in mid -April trading before the price manages to break it and slips lower towards the end of last April.
Reaching that level will record the latest highs of the price for the 4 -week trading period.
But beware if the price makes a decline below the 1.07000 level and passes the support level of the Moving Average 50 (MA50) on the 1 -hour time frame on the EUR/USD chart as an early signal for a change in the price trend.
The lower price decline is seen towards the RBS zone (resistance become support) at 1.06000 for the beginning of the bearish trend movement before the lower price decline towards around 1.05000.
