There was no change in market sentiment while seeing the US dollar continue its weak movement towards the end of the week after the dovish statement delivered by Federal Reserve (Fed) Chairman Jerome Powell.
Further strengthening expectations for the Fed to slow down interest rate hikes at the December meeting when examining the reading of the United States (US) economic data published yesterday.
The consumer expenditure index (PCE) data showed a decline in line with the inflation data that had been published before.
While the ISM survey of the manufacturing sector in the US fell to 49.0 points for November, marking the first contraction in more than 2 years.
Investors are more cautious at the end of the week awaiting the release of the US NFP jobs data report with overall expectations of gloomy data components.
If you look at the price movement on the EUR/USD currency pair chart, the price has climbed to the latest 6-month high above the level reached at the beginning of the week.
A daily gain of around 140 pips saw the price surge from the 1.04000 support level, break through the 1.05000 resistance, and reach a recent high around 1.05300.
Horizontal price movement when resuming trading in the Asian session this morning (Friday) above the 1.05000 zone with the expected increase to continue.
Continuing to rise higher, prices are expected to head towards the 1.06000 zone to continue recording recent highs if the US dollar remains weak.
On the other hand, if the NFP jobs report has the effect of strengthening the US dollar, the price will make a further decline below the 1.05000 zone.
The 1.04000 support level will again become the price target again and if the decline continues, the price is likely to break to around 1.03000.
