A re-strengthening is seen by the US dollar in the New York session yesterday as the market approaches the annual conference of the Jackson Hole symposium which is scheduled to start today (Friday) for 3 days.
Market players are certainly looking forward to the speech of Federal Reserve (Fed) Chairman Jerome Powell at the important event for further indications of the central bank's monetary policy.
The United States (US) unemployment benefit claims data published in the New York session yesterday were also seen to support the positive movement of the US dollar when it recorded a satisfactory figure for the previous week.
But investors will remain alert to the risk of the market being volatile and causing price movements to change direction at any time.
Examining the price chart of the EUR/USD currency pair yesterday, the price returned to display a downward pattern, not continuing the surge that occurred the previous day.
After hovering around the 1.08700 level in the Asian session, the price began to show a decline in the European session until it continued to the New York session and the price finally returned to the 1.08000 zone which was the focus.
The price movement is seen to fail to cross the Moving Average 50 (MA50) barrier on the 1-hour time frame on the EUR/USD chart to give a bearish signal.
Continuing trading in the Asian session this morning, the price tested the 1.08000 zone while recording a recent 10-week low.
The lower target after passing the important zone will further lead to the level of 1.07000.
If the price bounces back to make an increase above the 1.08000 zone, the MA50 barrier will be tested and if it is broken it will be a signal for a change in the price trend.
The rise will continue towards the 1.09000 zone before moving to a higher target at 1.10000.
