The economic activity data that was the focus of Tuesday's trading yesterday had an impact on price movements for major currencies.
The European manufacturing and services PMI data reading that was in focus yesterday evening saw a rather gloomy figure for October.
However, the story in the New York session is different, the same data reading for the United States (US) is stronger than forecast and shows a positive development for the current economic activity.
Thus, the US dollar strengthened significantly while the Euro currency again experienced depreciation.
On the chart of the EUR/USD currency pair, the price has plunged again after the initial rise almost touched the concentration level of 1.07000.
The price has plunged back below the 1.06000 level and slowed around that resuming trading in the Asian session this morning (Wednesday).
The price drop that has moved below the Moving Average 50 (MA50) barrier on the 1-hour time frame on the chart gives an early signal for a bearish trend change again.
With yesterday's momentum, the price is expected to continue further declines to head back to the previous focal support level at 1.05000.
If that level is successfully passed, the next price will be seen to test the zone around 1.04500.
However, if the price manages to bounce back above the 1.06000 level and then break through the MA50 barrier, this will be an indication for the rally to continue again.
The target is still at 1.07000 which was not successfully tested yesterday, becoming an important obstacle for the price to break through.
