The trend of price movement started to change on Thursday's trading yesterday, seeing the US dollar currency quite significantly experience a decline again.
After showing strengthening from the beginning of the week, the US dollar began to lose its momentum with analysts assessing concerns over the risk of a 'government shutdown' which made investors wary.
The decline of the US dollar that started in the European session yesterday continued into the New York session with a focus on the economic growth data of the United States (US) for the second quarter of 2023.
The final reading remained at a low of 2.1%, missing expectations for a 2.2% rise.
The Euro took this opportunity to recover after falling to an 8-month low against the US dollar.
It can be observed on the chart of the EUR/USD currency pair, a change in price direction was exhibited yesterday.
Prior to this, the continued decline in price had reached the support level of 1.05000 and the price was flat for a while as investors watched for a reaction to that important zone.
Then, there was a rebound with a height of around 1.05800, the price was reached on the increase until yesterday's New York session.
The price has also crossed the Moving Average 50 (MA50) barrier on the 1-hour time frame on the EUR/USD chart, signaling a trend change.
If the increase continues at the end of this week, the 1.06000 level is seen to be tested and if broken, the price has the potential to return to around 1.07000.
However, if the price starts to retreat down again, falling below the MA50 level will expect the price to test the 1.05000 support again.
Once broken, the latest low will be recorded with the next price target being at 1.04000.
