The US dollar continued to extend its strengthening until the close of the New York session even though at the opening of the session it showed a slight initial decline.
Risky market sentiment is a factor driving the US dollar's strengthening situation as concerns over real estate issues in China are increasing.
In the New York session yesterday, the United States (US) unemployment benefit claim data was published showing a declining number, also supporting the positive movement of the US dollar.
In addition to the risk-off sentiment, the market also placed expectations on the monetary policy of the Federal Reserve (Fed), which still remains on the tightening track before, will help strengthen the US dollar towards the meeting in September.
On the price chart of the EUR/USD currency pair, the price dropped to the latest low again reaching around 1.08600 at the end of the New York session, but there was a surge earlier in the session.
The rise initially almost touched the 1.09200 level but the price was seen to fail to hold the barrier of the Moving Average 50 (MA50) level on the 1-hour time frame on the chart, keeping the price back below the 1.09000 zone.
Next, a lower drop can be expected again with the target being to reach the support zone at 1.08000.
The Asian session this morning (Friday) saw a bullish attempt that tested the MA50 barrier around 1.08900.
If the price manages to break higher expect a rise to retest the 1.09000 zone while investors watch for signs of a trend change at the end of the week.
A move higher could reach back to the previous resistance level of 1.1000, but would require factors that make the US dollar more significantly weaker.
