The market's focus on trading heading into the end of the week was directed at a speech by Federal Reserve (Fed) Chairman Jerome Powell early this morning for the latest indication of the central bank's monetary policy.
Powell appeared cautious in his speech by suggesting that interest rate hikes are unlikely to be implemented in the near term.
However, it is still open for policy tightening measures based on current economic indicators such as employment and economic growth in the United States (US).
The USD dollar fell sharply again in yesterday's trade as Powell's speech was given the attention of the entire market.
On the chart of the EUR/USD currency pair, the price which was initially flat around 1.05300 then showed an increase until the concentration level of 1.06000 was tested.
After briefly testing that resistance, prices retreated back down to close the New York session trading below the zone and prices slowly resumed trading in the Asian session this morning (Friday).
The price is still hovering above the Moving Average 50 (MA50) support line on the 1-hour time frame on the EUR/USD chart for a bullish signal after yesterday's rally broke through.
If the price increase continues today, the resistance of 1.06000 will be tested again and if it is broken, the price will continue the bullish movement.
The target is to reach the level of 1.06400 which is the height reached in the previous week.
Meanwhile, if the price manages to move down again, passing the MA50 support will give a bearish signal for the price again.
If the price drop continues past the 1.05300 level yesterday, the price is seen to test the 1.05000 support which has been the focus of trading for the past few weeks.
