The price movement on the chart of the EUR/USD currency pair shows a bullish pattern for the second day while the US dollar is still trading weak.
The US dollar has lost the strengthening momentum exhibited from the beginning of the week as investors become more cautious ahead of the release of the US NFP employment data report in the New York session tonight (Friday).
The euro took advantage of the situation to recover from a fall to a 10-month low against the US dollar, but investors still see the risk of the euro depreciating again at any time.
A clearer direction will be known after the NFP report is published for an overview of the direction of the Federal Reserve's (Fed) monetary policy setting which previously signaled to continue raising interest rates.
On the EUR/USD chart yesterday, the price continued to rise from the 1.05000 level to reach a height of 1.05500 at the end of the New York session.
Horizontal price movement around that at the opening of the Asian session this morning with a still bullish signal where the price remains above the Moving Average 50 (MA50) support on the 1-hour time frame on the chart.
If the rising pattern continues today, the 1.06000 level is seen as a target to be reached and will be driven by the weakening US dollar factor.
More significantly, the price has the potential to break through higher and targets at 1.07000 which is the previous concentration level.
On the other hand, if the price plunges again, the 1.05000 level will be tested and if it is broken, it can give the impression that a lower decline will occur.
The continued decline will also test the weekly support level of 1.04500 before the 1.04000 level is targeted to target and record the latest 10-month low.
